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