Jos. A. Bank (Nasdaq: JOSB) has terminated its $2.3 billion offer to buy Men's Wearhouse Inc. (NYSE: MW) according to a letter sent to Men's Wearhouse CEO Douglas Ewert today, Nov. 15. Though Jos. A. Bank left open the possibility of reviving the offer if Men's Wearhouse decides to reconsider, the abandoned proposal ends a deal that would have combined two of the country's biggest sellers of men's suits.
Jos. A. Bank had set a deadline of Nov. 14, which was yesterday, for Men's Wearhouse to engage in deal discussions, but according to the letter, Men's Wearhouse rejected the offer and failed to engage in negotiations.
"Jos. A. Bank continues to believe that a transaction could be in the best interest of the respective shareholders of the two companies," Jos. A. Bank said in a statement early Friday. "If, in the future, we are invited by the Men's Wearhouse board to discuss our acquisition of Men's Wearhouse, or if circumstances were otherwise to change, Jos. A. Bank may consider whether a new proposal to acquire Men's Wearhouse is warranted."
Men's Wearhouse in October refused the $48-a-share proposal, saying the bid from Jos. A. Bank undervalued the retailer and wasn't in the best interest of investors.
News of the deal sent Men's Wearhouse shares down as much as 11 percent in early trading Friday.
Men's Wearhouse's largest shareholder, Eminence Capital LLC, expressed disappointment that the company's board had failed to engage in merger discussions.
"We are disappointed that Men's Wearhouse has so far failed to engage in merger discussions with Jos. A. Bank," Eminence CEO Ricky Sandler said in a statement. "Our special meeting initiative will give shareholders the tools to hold the board accountable for its failed leadership."
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