.Jos. A.Bank Clothiers Inc. will discuss plans to consolidate with retailer Men's Wearhouse according to Bloomberg Businessweek.
Jos. A Bank turned down a $1.78 billion proposal from the latter retailer that would have sealed the deal.Jos. A. Bank also recently announced an $825 million deal with Eddie Bauer
"Jos. A. Bank has a share price they think is adequate, and if Men's Wearhouse is willing to meet that share price I think Jos. A. Bank is willing to do the deal," Mark Montagna, an analyst for Avondale Partners told Bloomberg Businessweek. "Who knows what that share price is," Montagna told Bloomberg.Businessweek.
"We look forward to working collaboratively with the Jos. A. Bank board and management to effect this combination, which would provide your shareholders with a substantial premium and immediate value," Doug Ewert, CEO at Men's Wearhouse said in a statement.
Jos. A. Bank rebuffed Men's Wearhouse $1.5 billion offer Dec. 23 The Wall Street Journal reported. The retailer initially turning down a $2.4 billion bid from Jos. A. Bank, and subsequently offered the new deal Nov.26.
Men's Wearhouse also turned down Jos. A. Bank's $2.3 billion deal in October according to The New York Times.
Men's Wearhouse said it had twice as many stores as Jos. A Bank, and experienced 13 consecutive quarters of growth in same store sales through its main locations, while Jos A. Bank's revenue decreased three consecutive quarters.
Jos A. Bank introduced the idea to merge with its competitor three months after Men's Wearhouse let its founder and chairman George Zimmer go following a power struggle. over privatizing the company.
Jos. A. Bank shares increased over 4 percent at $2.39 a share to $56.80 Monday The Times reported.
Men's Wearhouse's shares saw a 3 percent rise at $1.49 a share to $52.08 The Times reported.
