Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) Moves Up Sharply
Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) proposed to buy its larger competitor Men’s Wearhouse in a bid worth $2.3B. The bidding company said that the combined company would create a men’s wear giant with a total of around 2,000 stores. However, the bid has been rejected by Men’s Wearhouse just 2 hours after the public announcement and tagged the deal as ‘inadequate’ and ‘opportunistic’. They said that the $48/share highly undervalued their company.
Later, Men’s Wearhouse announced that they would create a shareholder rights-plan. This is also dubbed as a ‘poison pill’. Via this plan, anyone who tries to purchase a large portion of the company’s stock will require the approval of the Men’s Warehouse board members. This percentage has been set at 15% for any group or individual and 15% of any passive institutional-investor.
On Wednesday, Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) disclosed that they had made this unsolicited proposal way back in September and the offer of $48 per share was a 42% premium at the company’s share price at that point of time. Men’s Warehouse said they are rejecting the deal as it is not in the best interest of the company’s stakeholders.
In Wednesday’s trading, Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) rose by 6.41%. The opening price of the shares was $43.85, which climbed to an intraday high of $45.50 and dipped to a close of $44.33. Approximately 4.80 million shares were traded on Wednesday while an average volume of 0.230 million shares were traded over a 30 day period. The 52-week low of Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) shares is $37.31and its 52-week high is $50.65. The company has a market capitalization of $1.24 billion.
About the company
Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) is involved in designing, manufacturing, retailing and direct marketing of men’s casual and tailored clothing and accessories. It is also a retailer of tuxedo-rental products.