Hampstead, Md. – The board of directors of Jos. A. Bank Clothiers, Inc. has officially rejected an unsolicited buyout offer from The Men’s Wearhouse. The offer, which expires March 28, 2014, is worth $57.50 per share, or about $1.6 billion.
Jos. A. Bank called the offer “inadequate and opportunistic” in announcing its rejection.
"Our board of directors firmly believes that the Men's Wearhouse offer is inadequate and significantly undervalues Jos. A. Bank and its near- and long-term potential," said Robert N. Wildrick, chairman of Jos. A. Bank. "Our board and the company's management team are committed to acting in the best interests of all of our stockholders, and continuing to deliver value for them. At this time, 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."
Men’s Wearhouse responded to Jos A. Bank’s announcement on its website, and called for the creation of a special committee to review the offer and begin negotiations.
“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 company said.