Jos. A. Bank Withdraws Bid for Men’s WearhouseNovember 18, 2013 – In The News
Ted Rosen was quoted in the Women’s Wear Daily article, “Jos. A. Bank Withdraws Bid for Men’s Wearhouse.” While the full text can be found in the November 18, 2013, issue of Women’s Wear Daily, a synopsis is noted below.
Jos. A. Bank Clothiers Inc. has withdrawn its offer to buy rival The Men’s Wearhouse Inc., but this does not necessarily mean the battle is over.
The retailer said it terminated its all-cash proposal to purchase the competitor’s store chain for $48 a share after its self-imposed Nov. 14 deadline came and went without any communication between the two firms.
According to Rosen, “The Men’s Wearhouse board viewed the offer as hostile, instead of working with the Jos. A. Bank board to reach an agreement that is in the best interests of shareholders. In today’s environment, boards need to be careful of what deals they do and don’t do.”
“In addition to fighting off Jos. A. Bank, The Men’s Wearhouse board now has a fight in the nebulous world called ‘breach of fiduciary duty.’ That’s a huge distraction to the management team,” Rosen added.
While Rosen believes Men’s Wearhouse “botched” the process, he does not believe that the deal itself is over.
According to Rosen, The Men’s Wearhouse board will likely reconsider its options over the next few weeks. “A director of a public company who has a stock trading at X and gets an offer at a premium [to that] really can’t ignore that offer,” he said.