Clothing firm Joseph A. Bank has rejected a $1.54 billion acquisition bid by rival Men's Wearhouse, marking a new chapter in the Wall Street suit wars.
The Hampstead, Md.-based firm announced Monday that its board of directors had unanimously turned down the Nov. 26 takeover bid after concluding that the offer "significantly undervalued the company."
Men's Wearhouse had offered to acquire Joseph A. Bank for $55 per share in cash, a bid that represented an implied value of roughly $1.2 billion for the takeover target. Men's Wearhouse said at the time its bid was 32% over the closing share price of Joseph A. Bank on Oct. 8 — the day before the firm proposed its own takeover of Men's Wearhouse.
"Our board undertook a thorough review and determined that the per share consideration in the proposal made to us by Men's Wearhouse was simply not in the best interest of our shareholders," Robert Wildrick, chairman of Joseph A. Bank, said in a statement announcing the decision. He added that the firm is continuing "to review acquisition opportunities that would represent a strategic fit with our company."
Joseph A. Bank shares were down 66 cemts at $56.37 shortly after U.S. financial markets opened Monday. Similarly, Men's Wearhouse shares were down 59 cents at $51.42.
Established in 1905, Joseph A. Bank is one of the nation's leading designers, manufacturers and retailers of men's tailored and casual clothing and accessories. The company has 629 stores in 44 states and the District of Columbia.