Jos. A. Bank Rejects Latest Men’s Wearhouse Bid

As expected, the board of Jos. A. Bank Clothiers Inc. (Hampstead, Md.) rejected the latest unsolicited tender offer by The Men’s Wearhouse Inc. (Houston). Bank said its competitor’s “true motives are unclear and its commitment to the offer is not credible.”

 “Our board of directors firmly believes that the Men’s Wearhouse offer is inadequate and significantly undervalues Jos. A. Bank and its near- and long-term potential,” said chairman Robert Wildrick. “At this time, the company has a well-developed strategy in place to continue to increase revenue, substantially improve margins and deliver enhanced returns to stockholders. The Jos. A. Bank board strongly urges stockholders to reject the offer and not tender their shares.”

Bank also filed a motion with the Delaware court to dismiss a lawsuit filed by Eminence Capital (New York), which was seeking a preliminary injunction preventing Bank from making any “ill-advised acquisition” that could risk the attractiveness of a merger.

Men’s Wearhouse released a statement accusing the Bank board of “repeatedly [refusing] to commence discussions regarding our premium offer to acquire the company. Given that the Jos. A. Bank board has publicly acknowledged the compelling strategic logic of this transaction, we think Jos. A. Bank shareholders should question why their board is refusing to negotiate with us to reach an agreement that will deliver to them significant value.” It urged Bank shareholders to vote to replace Wildrick and president and ceo Neal Black.