Men's Wearhouse Rejects Bid from Jos. A. Bank

By: Associated Press Email
By: Associated Press Email

NEW YORK (AP) - Men's Wearhouse says its board has rejected an unsolicited $2.3 billion bid by rival Jos. A. Bank to acquire the men's wear chain. It says the offer wasn't in the best interest of the company or its shareholders.

In a news release issued Wednesday, the company says the offer "significantly undervalues Men's Wearhouse and its strong prospects for continued growth and value creation."

The rejection comes after Jos. A. Bank Clothiers made public earlier Wednesday that it had made the offer last month.

The Hampstead, Md.,-based Jos. A. Bank said it offered to pay $48 in cash for each share of Men's Wearhouse.

HAMPSTEAD, MD. (AP) - Jos. A. Bank Clothiers says it has proposed to buy fellow retailer Men's Wearhouse for about $2.3 billion in cash in a deal that it expects will immediately help its earnings.

The Hampstead, Md., company says it has offered to pay $48 for each share of Men's Wearhouse.

That represents a 42 percent premium to the stock's closing price on Sept. 17, the day before Jos. A. Bank. pitched the deal to Men's Wearhouse executives.

The Men's Wearhouse Inc. shares climbed more than 33 percent to $47 in premarket trading Wednesday. Jos. A. Bank shares also are up almost 10 percent to $45.75.

Jos. A. Bank Clothiers Inc. says the deal will significantly help earnings. The company said last month its fiscal second-quarter net income fell 39 percent.

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