Top

Men’s Wearhouse Rejects Takeover

October 11, 2013 by  

Men’s Wearhouse Rejects Takeover, Men’s Wearhouse rejected an unsolicited $2.3 billion takeover bid by Jos. A. Bank Clothiers on Wednesday, calling the proposed deal “highly opportunistic” and saying it would be likely to draw antitrust scrutiny.

Jos. A. Bank proposed paying $48 a share in cash for Men’s Wearhouse, 36 percent above its closing stock price on Tuesday.

But the Men’s Wearhouse board said the bid undervalued the company and was not in the best interests of shareholders.

“The board and management team are confident that continuing our strategic plan will create more value for shareholders than Jos. A. Bank’s inadequate, highly conditional proposal,” Douglas S. Ewert, the chief executive of Men’s Wearhouse, said in a statement.

The rejection sets up a potential battle between two of the country’s biggest retailers of men’s suits. Men’s Wearhouse is a giant in suiting apparel, with 1,137 stores, and is a dominant player in the tuxedo rental industry. Though smaller, with 623 stores, Jos. A. Bank is another heavyweight in the men’s suiting sector, known for its seemingly endless, ever-changing discounts.

Jos. A. Bank’s chairman, Robert N. Wildrick, said in an interview that a merger of the two made sense, creating a stronger competitor to retailers like Macy’s and Dillard’s.

“This is a win-win for everyone,” he said. “This is a magnificent opportunity for their shareholders.”

Jos. A. Bank had been weighing bidding for its bigger rival for some time, but it moved forward with its plans this summer after hiring Goldman Sachs and Financo as advisers, according to Mr. Wildrick.

Report to Team

_________________________________________
Please feel free to send if you have any questions regarding this post , you can contact on

usspost@gmail.com

Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.

Comments

Comments are closed.

Bottom