JoS. A. Bank Withdraws Offer For Men's Wearhouse

(RTTNews) - Retailer JoS. A. Bank Clothiers, Inc. (JOSB) Friday withdrew its all-cash proposal for Men's Wearhouse, Inc. (MW) as its board did not engage in good faith negotiations by November 14.

JoS. A. Bank had confirmed in October that it made a non-binding proposal to acquire all outstanding shares of Men's Wearhouse for $48 per share in cash, representing a total equity value of about $2.3 billion, in a negotiated transaction.

Men's Wearhouse rejected the offer, stating it significantly undervalues the company and its strong prospects for continued growth and value creation. The retailer's board of directors also adopted a limited duration shareholder rights plan and declared a dividend of one right on each share of the company's common stock outstanding on October 21.

Meanwhile, Jos. A. Bank said it was willing to consider raising the acquisition price for Men's Wearhouse.

Jos. A. Bank had advised the board of directors of Men's Wearhouse that it would terminate its proposal if the board did not engage in good faith negotiations by November 14 and the deadline passed with Men's Wearhouse failing to engage in such discussions.

Jos. A. Bank said Friday that it continues to believe that a transaction could be in the best interest of the shareholders of the two companies.

In a letter to Men's Wearhouse CEO Douglas Ewert, Jos. A. Bank chairman Robert Wildrick said, ''If, in the future, we are invited by the Men's Wearhouse board to discuss our acquisition of Men's Wearhouse, or if circumstances were otherwise to change, Jos. A. Bank may consider whether a new proposal to acquire Men's Wearhouse is warranted.''

JOSB closed at $50.31 on Thursday. MW settled at $46.12.