Men's Wearhouse to JOSB: We don't like the way this looks
In a sharply worded statement, Men's Wearhouse called Jos A Bank's offer "opportunistic", adding that it "grossly undervalued" the apparel maker.
"We believe Jos. A. Bank's unsolicited proposal is opportunistic, subject to unacceptable risks and contingencies, and would deprive our shareholders of the value inherent in Men's Wearhouse for inadequate consideration," said Bill Sechrest, Lead Director of the Board.
The deal, which would be funded by a combination of cash-on-hand, new equity capital and debt, would "immediately and significantly" add to Jos. A. Bank's earnings, the company said.
Earlier this year, Men's Wearhouse abruptly dismissed its longtime founder and spokesman, George Zimmer, who famously coined the company's catchphrase: "You're going to like the way you look." Last quarter, the company missed Wall Street's estimates and offered cloudy guidance for the rest of the year.
"Our Board and management team have also been consistently committed to enhancing value by returning capital to shareholders, and we are enthusiastic about the prospects for Men's Wearhouse," said CEO Doug Ewert, in a statement. "We are confident that we can achieve total shareholder returns well in excess of what can be derived from Jos. A. Bank's unsolicited and inadequate proposal," he added.