Shares of Men's Wearhouse fell about 1 percent on Monday after Jos. A. Bank rejected its offer, the latest move in a protracted battle between two retailers intent on playing the lead role in the creation of a combined entity. (Click here for the latest quote.)
"I expect this tug-of-war to persist for some time," Anthony Michael Sabino, a professor at St. John's University's Peter J. Tobin College of Business, told Reuters.
(Read more: Men's Wearhouse proposes to acquire Jos. A Bank)
Fremont, California-based Men's Wearhouse last month offered $55 per share for Jos. A. Bank, turning the tables on its smaller rival only weeks after Jos. A. Bank had bid for Men's Wearhouse.
The retaliatory offer from Men's Wearhouse—an unusual tactic known as the Pac-Man defense after a 1980s videogame—followed pressure to merge from its largest shareholder, New York-based hedge fund Eminence Capital.