Jos. A. Bank offers $2.3 billion to buy Men's Wearhouse. The acquisition would create a menswear giant with 2,000 stores nationwide. According to Boston.com on Oct. 10, a $48 per share cash offer was made.
But the leaders at Men’s Wearhouse rejected the offer about two hours after it was publicly disclosed, calling it ‘opportunistic’ and ‘inadequate.’
Jos. A. Bank offers an unsolicited proposal to Men's Wearhouse in September, but was quickly rebuffed. Men's Wearhouse felt that it was not the best thing for the company or its shareholders at the time. A board member referred to the deal valuation to grossly underestimate what the company is currently worth. The official also said that the offer does not take into account the future potential of the retailer either. $48 per share represented a 42 percent premium to the share price at the time.
News of the Jos. A. Bank offers drove their own share price up over 6 percent. Shares of Men's Warehouse also rose in response 28 percent. The markets appeared to approve of the news. The board of Men's Warehouse responded by adopting a "poison pill", or shareholders rights plan. It is designed to keep anyone from buying a large amount of stock without prior board approval going forward.
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