This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Men's Wearhouse Rejects Jos. A. Bank Offer - Again (Update 1)

This story has been updated from 10:09 am EST with additional information and stock prices.

NEW YORK ( TheStreet) -- Investors clearly want a deal to happen between Men's Wearhouse (MW - Get Report) and Jos. A. Bank Clothiers (JOSB - Get Report) but they won't be getting it anytime soon.

Shares in Men's Wearhouse slid 2.9% to $42.08 as the markets opened on Monday after the menswear retailer rejected, for the second time, an offer by Jos. A. Bank to be acquired. Shares of Jos. A. Bank were down 0.62% to $47.66.

Jos. A. Bank last week sent a second letter to Men's Wearhouse CEO Doug Ewert saying it would consider raising its offer price if it were granted access to the company's non-public financial information. However, the proposal would be terminated on Nov. 14 if the Men's Wearhouse board didn't engage in discussions with Jos. A. Bank.

Also see: Jos. A. Bank Offers to Increase Men's Wearhouse Bid, Shares Drop

Men's Wearhouse reiterated on Monday that that it will not engage with its competitor in acquisition talks.

"Following receipt of the due diligence request, the Men's Wearhouse board of directors met and, in consultation with its outside financial and legal advisors, concluded that it is not in the best interest of the company's shareholders to provide Jos. A. Bank with access to nonpublic information concerning Men's Wearhouse," it said in a press release on Monday. "In responding to the due diligence request, the Board noted its determination that the highly-conditional Jos. A. Bank $48 per share proposal significantly undervalues Men's Wearhouse."

Last month, Men's Wearhouse rejected Jos. A. Bank's $2.3 billion cash takeover offer, saying the "significantly undervalues" the company and "is not in the best interests of Men's Wearhouse or its shareholders."

The deal proposed a takeout offer of $48 a share -- a premium of approximately 42% to Men's Wearhouse's closing price the day before the offer was sent on Sept. 18, 2013.

"Our board and management team are committed to creating value for our shareholders," Men's Waerhouse's Ewert said in the Monday press release. "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. We thank our shareholders for the support we have received."

BofA Merrill Lynch and J.P. Morgan Securities are serving as financial advisers to Men's Wearhouse.

Jos. A. Bank Chairman Robert Wildrick said in a statement on Monday afternoon that the company is "disappointed" at the second rejection. "Their board's position is a matter for consideration by the shareholders of Men's Wearhouse," Wildrick said. "For our part, we stand by our previous statement and will keep our proposal open until November 14, 2013."

-- Written by Laurie Kulikowski in New York.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
JOSB $64.98 -0.05%
MW $50.19 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%

Markets

DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs