Men’s Wearhouse Inc. said Jos. A. Bank Clothiers Inc.’s takeover bid undervalues the company and isn’t in the best interest of shareholders.
Men’s Wearhouse Chief Executive Officer Doug Ewert said in a statement that the retailer’s own strategic plan would create more value than the offer from smaller competitor Jos. A. Bank. The board of Houston-based Men’s Wearhouse won’t provide Jos. A. Bank access to nonpublic information for limited due diligence after Jos. A. Bank said in a letter last week it would consider raising its $2.3 billion bid if given access.
“We are enthusiastic about Men’s Wearhouse’s prospects and are confident that our strategic plan will deliver more value to our shareholders than Jos. A. Bank’s inadequate, highly conditional proposal,” Ewert said in the statement.
Jos. A. Bank Chairman Robert Wildrick said in a letter sent to Men’s Wearhouse last week he will terminate the buyout offer on Nov. 14 if Men’s Wearhouse doesn’t engage in “good faith discussions.” Shares of both companies fell, signaling investors are skeptical a deal will be completed. Jos. A. Bank dropped 0.5 percent to $47.71 at the close in New York, while Men’s Wearhouse slid 2.8 percent to $42.14.
Jos. A. Bank reiterated in a statement today that its proposal will remain open until the deadline next week.
“We are disappointed that the board of Men’s Wearhouse has rejected our request for information and thereby chosen not to explore the potential of Jos. A. Bank’s proposal for the benefit of their shareholders,” Wildrick said in the statement. “Their board’s position is a matter for consideration by the shareholders of Men’s Wearhouse.”