The Men's Wearhouse has expressed its "surprise" at the rejection of its acquisition proposal by men's apparel and footwear business Jos A Bank Clothiers.

Jos A Bank Clothiers today (23 December) said it would not accept a takeover offer made by Men's Wearhouse last month for $55.00 per share in cash.

The company "unanimously rejected" the proposal, claiming it "significantly undervalued" the business and its near and long-term potential.

In response to the rejection, Men's Wearhouse said it was "surprised" that Jos A Bank had turned the offer down, given its rival's "repeated expressions of interest" in engaging in discussions about a possible combination.

"The Men's Wearhouse all-cash proposal to acquire Jos A Bank has compelling strategic logic and the potential to deliver substantial benefits to our respective shareholders, employees and customers," the company said.

"While it is our strong preference to work collaboratively with Jos A Bank to realize the benefits of this transaction, we are continuing to carefully consider all of our options to make this combination a reality, including nominating director candidates at Jos A Bank's next annual meeting of shareholders."

The proposal represented a 45% premium over Jos A Bank's unaffected enterprise value and a 32% premium over its closing share price on 8 October - the day before Jos A Bank offered to acquire Men's Wearhouse.

The counter move by Mens Wearhouse came a week after Jos A Bank dropped a $2.3bn takeover offer for its rival.

Men's Wearhouse said it would finance the transaction with a combination of balance sheet cash and debt financing.