Men's Wearhouse (NYSE: MW) isn't throwing in the towel just yet. Today, Men's Wearhouse continued its takeover quest for Jos. A. Bank (NASDAQ: JOSB), saying it was prepared to increase its takeover offer.
In a letter to Jos. A. Bank's independent directors, Men's Wearhouse CEO Douglas Ewert said the company has a "strong preference" to work with Jos. A. Bank's board and management "to realize the benefits of this combination." Men's Wearhouse also urged Jos. A. Bank to form a special committee to reconsider the company's $1.6 billion acquisition offer.
"We are prepared to increase our offer price if you can demonstrate, or we can discover, additional value through discussions or limited due diligence," wrote Ewert.
Jos. A. Bank's board, led by Chairman and former CEO Robert N. Wildrick, has rejected multiple takeover offers from Men's Wearhouse in the last several months, calling the offers "inadequate." Jos. A. Bank said it is exploring other strategic options.
The two men's suit retailers have been trying to take each other over since last fall. Jos. A. Bank tried to buy Men's Wearhouse in October, before Men's Wearhouse turned the tables and tried to buy Jos. A. Bank weeks later.
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 will create a $3.5 billion retailer with more than 1,700 stores that some analysts said would better compete with department stores.
-See this Men's Wearhouse statement
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