Jos. A. Bank Clothier Inc. has rejected a $1.61 billion takeover offer from rival Men’s Wearhouse.
The two men’s clothing retailers have been engaged in a strange courtship for months.
Jos. A. Bank made a bid for The Men’s Wearhouse Inc. last year, which was rejected.
Men’s Wearhouse then turned the tables and made a bid for Jos. A. Bank that was denied in December. It then raised the offer to $57.50 per share, from $55 per share. But Jos. A. Bank said Friday that the offer is still too low and not in the best interest of shareholders.
Men’s Wearhouse plans to take the deal directly to shareholders, and Jos. A. Bank is urging shareholders to reject the offer, saying it significantly undervalues the company’s potential.
In a statement Friday, Fremont, Calif.-based Men’s Wearhouse said that Jos. A. Bank has refused to meet, and asked the company to form a special committee to evaluate its offer. It also urged Jos. A. Bank’s shareholders to tender their shares and vote for its two candidates for the company’s board.
Jos. A. Bank, based in Hampstead, Md., sells men’s tailored and casual clothing and shoes, and is known for ads that say consumers can buy one suit or sport coat and get three for free. Men’s Wearhouse runs its namesake chains as well as the Moores and the K&G chains.