* Rejects raised offer of $63.50 per share
* Says willing to provide limited amount of due diligence
* Jos. A. Bank, Men's Wearhouse shares up in after-market
(Adds details, share price)
Feb 27 Men's apparel retailer Jos. A. Bank
Clothiers Inc rejected Men's Wearhouse Inc's
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.
In an effort to remain independent, Jos. A. Bank earlier
this month offered to buy Eddie Bauer.
The tuxedo retailer said it believes the Eddie Bauer deal
had "significant value," and that the FTC has granted early
termination of the waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act.
Jos. A. Bank shares were up 3.8 percent at $62.60 in trading
after the bell after closing at $60.30 on Thursday on the
Men's Wearhouse shares were up 2.2 percent at $51.51 after
closing at $50.42 on the New York Stock Exchange.
(Reporting by Siddharth Cavale and Devika Krishna Kumar in
Bangalore; Editing by Savio D'Souza and Lisa Shumaker)