A Jos. A. Bank store in San Francisco on Oct. 9, 2013.The menswear retailer dropped its $2.3 billion bid for Men's Wearhouse on Friday.
The suits at one menswear company apparently wouldn't talk to the suits at the competitor trying to take them over.
Jos. A. Bank Clothiers has dropped its $2.3 billion offer to buy Men's Wearhouse, although it did not rule out another bid for its larger rival in future. It 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.
The largest shareholder of Men's Wearhouse, hedge fund Eminence Capital LLC, expressed disappointment that the company's board had failed to engage in merger discussions.
Eminence Capital, which owns about 10 percent of Men's Wearhouse, said that by allowing the deadline to expire, the company's board had confirmed it was not committed to fulfilling its basic fiduciary duties to shareholders.
A Men's Wearhouse store in San Francisco on Oct. 9, 2013. The retail company did not respond by a Nov 14 deadline to Jos. A. Bank's $2,3 billion takeover offer.
Jos. A. Bank offered to buy Men's Wearhouse for about $2.3 billion, or $48 per share, in cash but was swiftly rebuffed by its 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 catch phrase - "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.
Men's Wearhouse is being advised by Bank of America Merrill Lynch, JPMorgan Chase and law firm Willkie Farr & Gallagher.
Goldman Sachs and Financo were Jos. A. Bank's financial advisers and Skadden, Arps, Slate, Meagher & Flom and Guilfoil Petzall & Shoemake its legal advisers.
First published November 15 2013, 7:54 AM