US: Jos A Bank again rejects Men's Wearhouse bid
Earlier this month The Men's Wearhouse lifted its offer to acquire all outstanding shares of the US men's apparel and footwear business for $57.50 per share, bettering its November offer of $55.
However, in a statement on Friday (17 January), Jos A Bank rejected the offer, claiming it was "inadequate" from a financial point of view and "not in the best interest" of its stockholders.
Jos A Bank chairman Robert Wildrick, said: "The company has a well-developed strategy in place to continue to increase revenue, substantially improve margins and deliver enhanced returns to stockholders. The Jos A Bank board strongly urges stockholders to reject the offer and not tender their shares."
In response to the rejection, Men's Wearhouse has called on Jos A Bank's independent directors to form a special committee to evaluate what it claims is a "premium" offer.
"Unfortunately, the Jos A Bank board of directors has repeatedly refused to commence discussions regarding our premium offer to acquire the company," it said.
"Given that the Jos A Bank board has publicly acknowledged the compelling strategic logic of this transaction, we think Jos A Bank shareholders should question why their board is refusing to negotiate with us to reach an agreement that will deliver to them significant value.
"We remain committed to this transaction and are prepared to immediately engage in good-faith negotiations so we can deliver the compelling value of a combination of our companies to our respective shareholders."
The rejection of the offer is the latest move in a long-running battle between the two retailers.
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Men's Wearhouse has closed its acquisition of US men's apparel and footwear business Jos A Bank Clothiers following a long-running battle by the firm to buy its rival....
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