Shares of Jos. A. Bank (JOSB) climbed almost 4% in Monday morning trading after men’s apparel rival Men’s Wearhouse (MW) increased its bid for the retailer.
Men’s Wearhouse said it will pay $57.50 for each share of JOSB stock, valuing the takeover offer at $1.61 billion. Men’s Wearhouse said it was taking its proposal directly to Jos. A. Bank shareholders because it is “committed” to merging the two retailers,” the Associated Press notes.
Last month, Jos. A. Bank spurned a $55-a-share takeover offer from Men’s Wearhouse. JOSB said that offer undervalued the company.
The new offer from Men’s Wearhouse follows a move by JOSB to bolster its defense against a hostile takeover. Last week, JOSB cut the stake needed to activate its shareholders’ rights plan from 20% to 10%. Men’s Wearhouse said that the new offer will expire on Mar. 28.
JOSB made its own $2.3 billion bid for Men’s Wearhouse back in September. Men’s Wearhouse rejected the bid.
In addition to its bid for JOSB stock, Men’s Wearhouse indicated that it will nominate to new independent candidates to sit on the JOSB board or directors.
Men’s Wearhouse ousted George Zimmer, its founder and chairman, over the summer.
Shares of MW stock rose more than 1% in Monday morning trading. MW stock has gained more than 40% since October.