Men's apparel and footwear business Jos A Bank Clothiers has said it will not accept a takeover offer made by Men's Wearhouse.

Last month, Men's Wearhouse made an offer to acquire Jos A Bank Clothiers' apparel business for US$1.2bn, at $55.00 per share in cash.

However, in a statement today (23 December), Jos A Bank said that after thorough consideration by its board, and with assistance from its legal advisors, it has "unanimously rejected" the proposal.

The company said the price proposed by Men's Wearhouse "significantly undervalued" the business and its near and long-term potential and was "not in the best interest of the company's shareholders". The firm reiterated that it is reviewing all alternatives regarding potential strategic acquisition opportunities.

"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 chairman Robert Wildrick.

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.