Jos. A. Bank Recommends Against Takeover Bid
Jos. A. Bank Clothiers Inc.'s board has recommended shareholders reject a $1.6 billion takeover bid by rival Men's Wearhouse Inc., calling the offer "inadequate."
The recommendation by the board, which Jos. A. Bank said it would make by Friday, urged shareholders to reject the bid and not tender their shares to Men's Wearhouse's cash offer.
On Friday, Jos. A. Bank said it was confident that the company's could deliver greater value to shareholders as a stand-alone firm. It called the offer "opportunistic and timed to acquire Jos. A. Bank as it is posting better financial results.
A representative at Men's Wearhouse wasn't immediately available to comment on the board's recommendation.
Men's Wearhouse earlier this month raised its bid for the rival men's clothing retailer, offering to buy it for $57.50 a share, a 52% premium over its close on Oct. 8--the day before Jos. A. Bank's initial attempt to buy its rival.
"Our board of directors firmly believes that the Men's Wearhouse offer is inadequate and significantly undervalues Jos. A. Bank," said Chairman Robert N. Wildrick.
Jos. A. Bank had earlier rejected a $55 a share takeover offer, saying that price also "significantly" undervalued the company. Men's Wearhouse's interest in Jos. A. Bank came after the latter company in early October made an unsolicited, $2.3 billion offer for its larger rival.
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