Men’s Wearhouse Willing to Raise Offer for Jos. A. Bank

Men’s Wearhouse may be willing to increase its bid for Jos. A. Bank in the ongoing takeover battle between the two men’s suit retailers.

In a letter to Jos. A. Bank’s board released on Thursday, Men’s Wearhouse reiterated its previous offer to buy its rival at $57.50 a share, but added that “we are prepared to increase our offer price if you can demonstrate or we can discover additional value through discussions or limited due diligence.”

Jos. A. Bank had rejected the offer of $57.50 earlier this month, calling the price “inadequate and opportunistic.” Shares of Jos A. Bank closed at $54.86 on Wednesday.

The two companies have been trying to take each other over for months. Jos. A. Bank tried to buy Men’s Wearhouse in October, but Men’s Wearhouse soon turned the tables and tried to buy Jos. A. Bank just weeks later.

Both companies have lowered their poison pill thresholds as a defensive maneuver. Poison pills are triggered when an investor purchases a certain amount of stock, flooding the market with more shares to dilute investors’ interest.

In its letter, Men’s Wearhouse even tried to use some of the arguments of Jos. A. Bank’s chairman, Robert N. Wildrick, against the company.

When Jos. A. Bank proposed to acquire Men’s Wearhouse, the letter said, “Mr. Wildrick articulated a compelling rationale for combining our two companies: ‘We believe that Men’s Wearhouse and Jos. A. Bank are ideal partners…. By combining our two companies, we can together create the best men’s apparel and sportswear designer, manufacturer and retailer in the U.S.’”

Jos. A. Bank declined to comment.