Shares of The Men’s Wearhouse (MW) soared almost 25% in Wednesday morning trading after a buyout bid from a men’s apparel rival was made public.
Jos. A. Bank (JOSB) has offered to pay $48 a share for Men’s Wearhouse, valuing the all cash deal at $2.3 billion. The offer was originally submitted to Men’s Wearhouse management in private back in September. Jos. A. Bank is offering a 42% premium over Men’s Wearhouse’s share price at the time the bid was first made, the Associated Press notes.
On Wednesday, Men’s Wearhouse shot down the buyout bid, which it dismissed as “highly opportunistic.” Men’s Wearhouse said the offer undervalued the company and was likely to raise anti-trust concerns from regulators, the New York Times noted.
Men’s Wearhouse experienced a management shuffle over the summer after its George Zimmer, its founder and chairman, was ousted by its board after he disagreed with its board about the company’s business strategy.
In August, reports surfaced that Zimmer was looking to buy the company, though Men’s Wearhouse was said to be disinclined toward a sale.
The company operates 1,200 stores under its Men’s Wearhouse, K&G and Moore’s brands.
Shares of Jos. A. Bank gained almost 7% in Wednesday morning trading.