RPR&C In The Media

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Baltimore Sun – Men’s Wearhouse rejects Jos. Bank’s latest bid – quote by Jerry Reisman

November 4, 2013 Posted in: RPR&C In The Media

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The Men’s Wearhouse rejected Jos. A. Bank Clothiers Inc.’s latest effort to acquire it, denying the Hampstead-based retailer’s request to review non-public company information.

The board of Houston-based Men’s Wearhouse decided that providing Bank with company access is not in the best interest of shareholders, Men’s Wearhouse said Monday. The men’s apparel chain had previously rejected Bank’s $2.3 billion acquisition offer, saying it undervalued the company.

Bank said Thursday it would consider sweetening its $48 per share proposal if it could conduct due diligence and gave its rival two weeks to enter talks before it will walk away.

“We are enthusiastic about Men’s Wearhouse’s prospects and are confident that our strategic plan will deliver more value to our shareholders than Jos. A. Bank’s inadequate, highly conditional proposal,” Douglas S. Ewert, CEO, president and a director, said in a statement.

Bank said Monday that the company is disappointed with the Men’s Wearhouse response.

“Their board’s position is a matter for consideration by the shareholders of Men’s Wearhouse,” said Robert N. Wildrick, Bank’s chairman. “For our part, we stand by our previous statement and will keep our proposal open until November 14.”

One merger and acquisition expert said it came as no surprise that Men’s Wearhouse won’t cooperate.

“Management of Men’s Wearhouse oppose the takeover because it could cost them their jobs,” said Jerry Reisman, a partner in New York firm Reisman, Peirez and Capobianco. “Also, they question the debt that will be created to finance the new company, which could ultimately adversely impact on the continued success and growth of the company.”