Even though Jos. A. Bank (NASDAQ: JOSB) hinted last week that it might raise its proposed takeover offer for Men's Wearhouse (NYSE: MW) if it was allowed to conduct due diligence, Men's Wearhouse doesn't want anything to do with it.
Jos. A. Bank's $48-a-share offer significantly undervalued the company, Men's Wearhouse said in rejecting the due diligence request. Plus, it is not in the best interest of its shareholders to provide Jos. A. Bank with access to nonpublic information on the company, according to a Men's Wearhouse statement.
"We are enthusiastic about Men's Wearhouse's prospects and are confident that our strategic plan will deliver more value to our shareholders than Jos. A. Bank's inadequate, highly conditional proposal," Men's Wearhouse Chief Executive Douglas S. Ewert said in the statement, The Wall Street Journal reported. "We thank our shareholders for the support we have received."
Meanwhile, Jos. A. Bank Chairman Robert N. Wildrick said his company was "disappointed" in the decision by the Men's Wearhouse board not to allow a request for due diligence.
"For our part, we stand by our previous statement and will keep our proposal open until November 14," Wildrick said, The Wall Street Journal reported.
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