NEW YORK (TheStreet) - By now, the back and forth repeated rejections of a merger between specialty menswear retailers, Jos. A. Bank Clothiers (JOSB) and Men's Wearhouse (MW), has to be considered comical. It's a match-up that investors clearly want, but the companies continue to inexplicably posture for better terms.
Almost one month after the Hampstead, Md.-based company received a $1.5 billion, or $55 per share, cash buyout offer from its menswear suits and sportswear competitor, Jos. A. Bank announced that it has rejected the bid.
Jos. A. Bank said the offer "significantly undervalued" the company and "its near and long-term potential and was not in the best interest of the company's shareholders," according to a release. "Further, as the company has said previously, it is reviewing all alternatives regarding potential strategic acquisition opportunities that would enable the company to drive significant value for shareholders."
"Our board undertook a thorough review and determined that the per share consideration in the proposal made to us by Men's Wearhouse was simply not in the best interest of our shareholders," said Jos. A. Bank's Chairman Robert Wildrick said in a statement on Monday. "At the same time, we continue to review acquisition opportunities that would represent a strong strategic fit with our company and provide an opportunity to leverage our core competencies to drive meaningful growth, synergies and substantial value creation over the long term."
Shares of Jos. A. Bank fell 1.3% to $56.28 on Monday. Men's Wearhouse shares were falling 0.75% to $51.62.