Jos. A. Bank rejects Men's Wearhouse bid, says open to talks
(Reuters) - Men's apparel retailer Jos. A. Bank Clothiers Inc JOSB.O rejected Men's Wearhouse Inc's MW.N revised takeover offer calling it inadequate, but said it was willing to talk with its larger rival about a higher bid.
Jos. A. Bank shares rose 3.8 percent in trading after the bell on Thursday, while Men's Wearhouse shares rose 2.2 percent.
Men's Wearhouse on Monday raised its cash tender offer to Jos. A. Bank shareholders to $63.50 per share from $57.50, and added it could increase the offer to $65 if it was able to conduct limited due diligence.
"Our board has authorized our meeting with you (Men's Wearhouse) to establish a process that will enable you to advise our board as to the highest price you are prepared to pay in an acquisition of Jos. A. Bank," the company said on Thursday.
Jos. A. Bank, which itself has offered to buy outdoor apparel retailer Eddie Bauer, said it was prepared to provide Men's Wearhouse with a limited amount of due diligence information, under certain conditions.
Jos. A. Bank also said it would like to discuss the deal structure and the proposed stock component to its shareholders.
The company's move is the latest in a saga that has played out since last October, when Jos. A Bank made an offer to buy out its larger rival. Men's Wearhouse turned the tables with its own offer and then, in January, went hostile by taking its offer to its smaller rival's shareholders.
Around that time, the merger efforts attracted the attention of the Federal Trade Commission who posed extra questions under a so-called "second request."
Jos. A. Bank said on Thursday it would require certainty of closing a deal in light of the FTC's pending second request. Continued...