In a constant game of back-and-forth, Jos. A. Bank has rejected the acquisition proposal from Men’s Wearhouse, citing the billion dollar proposal was “significantly undervalued,” according to a statement released by Jos. A. Bank.
The acquisition game between these two merchant goes back to the fall, when the Men’s Wearhouse’s Board of Directors voted Oct. 9 to reject an unsolicited, non-binding proposal from Jos. A. Bank to acquire Men’s Wearhouse for $2.3 billion. A few weeks later, Men’s Wearhouse made an offer to acquire Jos. A. Bank for $1.2 billion or $55 a share.
In a statement issued by Jos. A. Bank on Dec. 23, the company said after “thorough consideration” by its Board of Directors and financial and legal advisors, it has unanimously rejected the most recent proposal by Men’s Wearhouse.
Jos. A. Bank’s advisors concluded that the $1.2 billion proposal was “not in the best interest” for shareholders to move forward.
In the statement, Robert N. Woldrick, chairman of Jos. A. Bank, said “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.”
He added, “At the same time, we continue to review acquisition opportunities that would represent a strong strategic fit with our Company and provide an opportunity to leverage our core competencies to drive meaningful growth, synergies and substantial value creation over the long term.”
Erin Lynch is the senior content producer at Multichannel Merchant. Erin can be reached (203)899-8461 or connect with her socially on Twitter, Google+, and LinkedIn.