Jos. A. Bank Clothiers says it is willing to consider raising its rejected $2.3 billion bid for rival business Men’s Wearhouse.
In a letter to Men’s Wearhouse CEO Doug Ewert, Jos. A. Bank said it is willing to lift its $48 per share acquisition price for Men’s Wearhouse if the company is allowed to conduct limited due diligence to determine if an increase would be justified.
“Our evaluation of Men’s Wearhouse was necessarily based solely on publicly available information,” the letter noted.
“We believe that if we were provided with access to a limited amount of non-public information we could promptly determine whether we could increase our proposed acquisition price. We are, of course, prepared to execute a mutually acceptable non-disclosure agreement to provide Men’s Wearhouse with the assurance that any information provided will be kept confidential.”
The comments come a week after Men’s Wearhouse reiterated its opposition to the $2.3 billion takeover bid proposed by Jos. A. Bank, issuing an investor presentation to set out its future strategy.
“Despite the market premium generated by our proposal, your board has refused to discuss the proposal with us. Under the circumstances, there is no reason for this process to drag on,” the letter noted.
“If your board has not engaged in good faith discussions with us by November 14 we will terminate our proposal in order to consider other strategic alternatives which we have been investigating.”
Read the full text of Jos. A. Bank’s letter to Men’s Wearhouse here.
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