UPDATE: US: Men's Wearhouse rejects Jos A Bank takeover bid
Men's Wearhouse said the proposal also undervalues its "strong prospects for continued growth and value creation", and is not in the best interests of the retailer or its shareholders.
"After careful review and deliberation, our board of directors has determined that Jos A Bank's proposal significantly undervalues Men's Wearhouse and fails to reflect the company's growth strategy and upside potential," Bill Sechrest, lead director of the Men's Wearhouse board said.
"We believe Jos A Bank's unsolicited proposal is opportunistic, subject to unacceptable risks and contingencies, and would deprive our shareholders of the value inherent in Men's Wearhouse for inadequate consideration."
Jos A Bank earlier today (9 October) said it intended to fund the transaction with a combination of cash on its balance sheet, new equity capital from Golden Gate Capital and debt financing.
President and CEO Doug Ewert added: "The board and management team are confident that continuing our strategic plan will create more value for shareholders than Jos A Bank's inadequate, highly conditional proposal.
"Men's Wearhouse has undertaken a number of strategic initiatives to accelerate growth and profitability, including our recent acquisition of JA Holding and the Joseph Abboud brand.
"We believe we are well positioned to deliver compelling value to our shareholders."
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