Jos. A. Bank terminates offer to buy Men's Wearhouse
Jos. A. Bank Clothiers terminated its proposal to buy Men's Wearhouse, sending Men's Wearhouse shares down 8 percent before the bell, although Jos. A. Bank did not rule out another bid for its larger rival in the future.
Jos. A. Bank had said it would terminate its proposal if the Men's Wearhouse board did not engage in good faith negotiations by Nov. 14.
"(If)... we are invited by the Men's Wearhouse board to discuss our acquisition ... or if circumstances were otherwise to change, Jos. A. Bank may consider whether a new proposal to acquire Men's Wearhouse is warranted," Jos. A. Bank said on Friday.
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Jos. A. Bank offered to buy Men's Wearhouse in October for about $2.3 billion, or $48 per share, in cash but was swiftly rebuffed by its larger rival, which dismissed the offer as inadequate.
Men's Wearhouse was founded in 1973 by George Zimmer, known to U.S. television audiences for his advertising catchphrase—"You're gonna like the way you look. I guarantee it".
Men's Wearhouse, which ousted Zimmer in June, also adopted a poison pill to prevent a hostile takeover.
A 100-year-old seller of men's tailored and casual clothing, Jos. A. Bank has over 600 stores in the United States, according to the company's website.
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Goldman Sachs and Financo were Jos. A. Bank's financial advisers and Skadden, Arps, Slate, Meagher & Flom, and Guilfoil Petzall & Shoemake its legal advisers.
Men's Wearhouse shares were trading at $42.50 before the bell. The stock last traded at $35.24 before the offer was announced on Oct. 9. It closed at $46.12 on Thursday on the New York Stock Exchange.