Jos. A. Bank (Nasdaq: JOSB) has rejected Men's Wearhouse's (NYSE: MW) offer to buy the company, the latest move in an ongoing saga to merge the nation's two biggest men's specialty apparel chains.
The Hampstead, Md.-based retailer announced Monday, Dec. 23, that its board of directors had unanimously turned down the Nov. 26 takeover bid after concluding that the offer "significantly undervalued the company."
"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," Jos. A. Bank Chairman Robert Wildrick said in a statement.
Men's Wearhouse last month offered $55 per share for Jos. A. Bank, turning the tables on its smaller rival only weeks after Jos. A. Bank bid for Men's Wearhouse. Although the merger with Men's Wearhouse appears to be off the table for now, Jos. A. Bank said it is continuing to review potential strategic options.
Executives at both retailers have touted the benefits of a merger, which would include cost savings, diversifying their product lines and little overlap between their customers. A merger of the chains would have created a $3.5 billion retailer with more than 1,700 stores that some analysts said would better compete with department stores.
Jos. A. Bank shares were down 66 cents at $56.37 shortly after U.S. financial markets opened Monday. Similarly, Men's Wearhouse shares were down 59 cents at $51.42.
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