Men's Wearhouse has rebuffed a $2.3 billion acquisition offer from Joseph A. Bank Clothiers, dismissing the proposal as "inadequate" and saying it could do better on its own.
After the bid Wednesday, Men's Wearhouse adopted a poison pill, or shareholder rights plan, that would be triggered if an outside investor acquires 10 percent or more of its common stock, or if an institutional investor takes a 15 percent stake.
The poison pill, a device used by companies to prevent hostile takeovers, expires Sept. 30, 2014, though Men's Wearhouse could end it earlier.
The $48 per share cash offer, which would create a menswear heavyweight with more than 1,700 stores in North America, is a 36 percent premium to the closing price of Men's Wearhouse shares Tuesday.
Men's Wearhouse shares closed Wednesday up 27.8 percent, at $45.03. Jos. A. Bank closed up 6.4 percent, at $44.33, on the Nasdaq. After the poison pill was announced, its shares fell 0.5 percent in after-hours trading.
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Men's Wearhouse said the nonbinding offer undervalued the company and its growth prospects.
"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,'' Men's Wearhouse CEO Doug Ewert said in a statement.