Jos. A. Bank (NASDAQ: JOSB) is not giving up on its pursuit of Men's Wearhouse without a fight. The retailer announced in a statement on Thursday, Oct. 31, that it would consider raising its $2.3 billion bid for Men's Wearhouse (NYSE: MW) if allowed to assess whether an increased bid is justified.
In a letter sent to Men's Wearhouse chief executive Douglas Ewert, Jos. A. Bank Chairman Robert Wildrick said that if "good faith discussions" are not held by Nov. 14, his company will pull its offer so that it can consider "other strategic alternatives" that it has been investigating.
"We believe that your shareholders would be best served by your providing us with a limited amount of non-public information so that we can advise you whether we can improve our price," Wildrick said in the letter.
In September, Men's Wearhouse rejected an unsolicited bid from Jos. A. Bank, worth $2.3 billion, or $48 per share, calling it "opportunistic" and "subject to unacceptable risks and contingencies.
On Thursday, shares of both companies fell, an indication that investors are doubtful a deal will be completed. Jos. A. Bank dropped 3.8 percent to $47.95 at the close in New York, while Men's Wearhouse slid 3.1 percent to $42.30.
Earlier this month, a source revealed that Men's Wearhouse may also be considering a bid for Allen Edmonds Corp., an upscale shoemaker with 38 company-owned retail stores.
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