Men’s Wearhouse again rebuffed a $2.3 billion takeover bid by Jos. A. Bank on Monday, refusing to allow it confidential access to its books. The move may be the last salvo in the battle to combine two of the country’s biggest retailers of men’s suits.
The refusal comes only four days after Jos. A. Bank sent a letter to Men’s Wearhouse, dangling the prospects of raising its offer above $48 a share if it was allowed to conduct due diligence.
But the quick response by Men’s Wearhouse â€" well before the Nov. 14 deadline that’s. A. Bank had set â€" reflected the company’s strong opposition to the takeover campaign. In a statement on Monday, Men’s Wearhouse again criticized the unsolicited bid as highly conditional and reiterated its belief that its own turnaround plan would be better for shareholders.
“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,†Douglas S. Ewert, the company’s chief executive, said in the statement.
Jos. A. Bank’s chairman, Robert Wildrick, has said that if Men’s Wearhouse continued to prove unwilling to even begin talks, his company would have no choice but to walk away and focus on its own strategic initiatives.
Shares in Men’s Wearhouse dropped nearly 4 percent in early morning trading on Monday, to $41.68.
Jos. A. Bank first announced its takeover approach in September, hoping to combined with its larger rival to create the country’s biggest specialist in selling men’s suits.
The bid came several weeks after Men’s Wearhouse ousted its founder and chairman, George Zimmer, for pressing the idea of taking the retailer private in an effort to revive its fortunes.
Men’s Wearhouse is being advised by Bank of America Merrill Lynch, JPMorgan Chase and the law firm Willkie Farr & Gallagher.
