NEW YORK Feb 2 Jos. A. Bank Clothiers Inc
on Sunday rejected yet another offer by rival Men's
Wearhouse Inc, the latest in a prolonged acquisition
battle between the two men's clothing retailers.
In response to Men's Wearhouse offer last week that it is
open to sweetening its spurned buyout offer under certain
conditions, Jos. A. Bank said the proposal was still
undervaluing 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," said the letter to Douglas Ewert, president of
"Accordingly, we see no benefit in commencing negotiations
with Men's Wearhouse."
In a letter to Jos. A. Bank's independent directors on
Thursday, Men's Wearhouse said it could raise an offer of $1.61
billion, or $57.50 per share, "if additional value was
discovered through discussions or limited due diligence."
The stock closed Friday at $56.22 per share; Men's Wearhouse
shares ended at $48.04.
Jos. A. Bank was said to be in talks buy retailer Eddie
Bauer Inc from private equity owner Golden Gate
Capital, according to a source familiar with the talks on
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.