Men's apparel and footwear business Jos A Bank Clothiers has dropped its US$2.3bn acquisition offer for rival Men's Wearhouse, but said it still believes a transaction would be in the best interest of the shareholders of both companies.

The offer deadline for Men's Wearhouse expired on Thursday (14 November) during which time the companies did not engage in discussions over a potential merger. 

In a letter to Men's Wearhouse, Jos A Bank chairman Robert Wildrick said: "We continue to believe that a transaction between our two companies could be in the best interest of our respective shareholders.

"If, in the future, we are invited by the MW Board to discuss our acquisition of Men's Wearhouse, or if circumstances were otherwise to change, Jos A Bank may consider whether a new proposal to acquire Men's Wearhouse is warranted."

Eminence Capital, which owns 9.8% stake in Men's Wearhouse, said it was "disappointed" with the result, and called for a meeting with other shareholders to propose amendments to bylaws, allowing them to remove directors without cause and increase board accountability.

The shareholder added that by allowing the deadline to expire, "the board has confirmed that it is not committed to exercising its basic fiduciary duties to shareholders and is satisfied with the status quo".