Jos. A. Bank Rejected By Men’s WearhouseBy: Jennifer Curra - October 9, 2013
Men’s Wearhouse chose not to take the $2.3 billion offer presented by powerhouse Joseph A. Bank. Though shares for Men’s Wearhouse fell 12 percent during September, company representatives are determined to continue promoting the viability of the company.
According to the Lead Director for the Board, Bill Sechrest, the proposal by Joseph A. Bank was viewed as being “opportunistic. The statement from Bill Sechrest read as follows:
“Men’s Wearhouse believes the Jos. A. Bank unsolicited and inadequate proposal is a highly opportunistic attempt to exploit a temporary dislocation in the stock price of Men’s Wearhouse in order to deprive Men’s Wearhouse’s shareholders of the intrinsic value of their investment. Men’s Wearhouse’s recent second-quarter performance was impacted by difficult market conditions, which many other retailers faced during the quarter, including Jos. A. Bank.”
However, not everyone seems to share the views voiced by Bill Sechrest. In fact, many are wondering why Men’s Wearhouse would let such an offer slip by without consideration. One of these individuals is Brian Sozzi, who is the Chief Equities Strategist at Belus Capital.
Brian Sozzi shared his opinion about the potential business venture prior to Men’s Wearhouse rejecting the offer.
“Men’s Wearhouse would be absolutely silly not to take the money and run. The company is not a growth retailer,” Sozzi said.
A possible deal may still happen, according to Brian Sozzi, who went on to explain why he does not consider this rejection to completely be a done deal.
“This was not some fly by night, hastily put together deal. This is something that Jos A. Bank has clearly been working on for a while and they could sweeten the deal a bit,” Sozzi said.
Men’s Wearhouse saw shares rise twenty-five percent as a result of the offer from Joseph A. Bank. Do you think that representatives from Men’s Wearhouse made the best decision?
The following video shows a discussion about the present condition of Men’s Wearhouse considering company shares.[Image Via Wikimedia Commons]