Jos. A. Bank Rejects Bid from Men's Wearhouse

Jos. A. Bank Clothiers Inc. (JOSB) rejected a roughly $1.5 billion acquisition offer from rival men's clothing retailer Men's Wearhouse Inc. (MW), saying the price offered "significantly undervalued" the company.

Jos. A. Bank added that it is continuing to review potential strategic options.

"Our board undertook a thorough review and determined that the per share consideration in the proposal made to us by Men's Wearhouse was simply not in the best interest of our shareholders," said Robert N. Wildrick, chairman of Jos. A. Bank. "At the same time, we continue to review acquisition opportunities that would represent a strong strategic fit with our company."

The latest bid rejection is another chapter in Jos. A. Bank and Men's Wearhouse's back-and-forth acquisition efforts.

Jos. A. Bank, which is based in Hampstead, Md., first made an unsolicited $2.3 billion offer for its Houston-based rival in early October, but it was soon rejected. Later in the month, Jos. A. Bank said it would consider raising its bid for Men's Wearhouse if it were able to conduct limited due diligence. Men's Wearhouse again rebuffed the overture, calling Jos. A. Bank's offer of $48 a share too low.

In November, Jos. A. Bank withdrew its takeover offer, but left the door open for possible talks in the future. Later that month, Men's Wearhouse made a $55 a share offer for Jos. A. Bank, which was rejected Monday.

A Men's Wearhouse representative wasn't immediately available for comment.

Jos. A. Bank shares closed Friday at $57.03, and Men's Wearhouse shares closed at $52.01.

Write to Ben Fox Rubin at [e-mail]

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