Jos. A. Banks (JOSB) is walking away from its potential purchase by Men’s Warehouse (MW) yet again — saying MW’s offer devalues its true worth.
Jos. A. Banks was initially offered a deal it rejected — which Men’s Wearhouse said it would increase under certain conditions.
Men’s Wearhouse was saying it would raise its of $1.61 billion “if additional value was discovered through discussions or limited due diligence.”
That olive branch was rejected in a letter to the company.
“After carefully reviewing your offer with our financial and legal advisors, we continue to believe that your offer to acquire Jos. A. Bank substantially undervalues our company and that your proposal is not in the best interests of our stockholders,” Jos. A Banks stated in a letter to Douglas Ewert, president of Men’s Wearhouse.
“Accordingly, we see no benefit in commencing negotiations with Men’s Wearhouse.”
Jos. A. Bank has been involved in a prolonged and nasty struggle with Men’s Wearhouse, with each making overtures to buy the other. Jos. A. Bank has urged shareholders to reject the hostile bid, calling it inadequate and opportunistic.
Men’s Wearhouse took a revised offer to Jos. A. Bank shareholders in early January after its rival rejected an offer of $55 per share in December.
JOSB stock is down 3.5% pre-market. MW stock was up 2% in yesterday’s trading.
