Jos. A. Bank turns down Men's Wearhouse offer

Written By Unknown on Senin, 23 Desember 2013 | 23.16

NEW YORK — Jos. A. Bank is rejecting a takeover offer from competitor Men's Wearhouse, saying the $1.54 billion bid is too low.

Jos. A. Bank Clothiers Inc. said Monday its board unanimously rejected the offer. The Hampstead, Md., company said it will continue to look into acquisition opportunities that would create value for its shareholders.

Jos. A. Bank offered to buy its larger rival in September for $2.3 billion, or $48 per share. Men's Wearhouse turned down that offer, and after Jos. A. Bank dropped the bid, Men's Wearhouse offered to buy its rival for $1.54 billion. The deal valued Jos. A. Bank at $55 per share. A combination could create a menswear powerhouse of more than 1,700 outlets.

Shares of The Men's Wearhouse fell 64 cents to $51.37 in morning trading, and Jos. A. Bank stock declined 41 cents to $56.62.

In June, Men's Wearhouse ousted its founder and chairman, George Zimmer following a dispute over the direction of the company. In August the retailer completed its acquisition of JA Holdings, which owns the Joseph Abboud brand.

Jos. A. Bank sells men's tailored and casual clothing, sportswear and footwear. While it targets a more established male professional, it's known for generous promotions like buying one suit or sport coat and getting three for free. Men's Wearhouse sells men's sportswear and suits through its namesake chain of stores, as well as Moores and the K&G retail chain. Recently, the company has been going after younger shoppers with suits featuring slimmer silhouettes.


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