Business

Men’s Wearhouse won’t open books

Men’s Wearhouse says the offer from Jos. A. Bank undervalues the company.
Mario Anzuoni/Reuters/files
Men’s Wearhouse says the offer from Jos. A. Bank undervalues the company.

NEW YORK — Men’s Wearhouse said Monday that it won’t give rival Jos. A Bank access to nonpublic information that it could use to assess whether to potentially raise its $2.3 billion buyout offer.

Jos. A. Bank Clothiers Inc., based in Hampstead, Md., said in a statement that it was disappointed its request for information was turned down and reaffirmed it would drop its offer if ‘‘good faith discussions’’ are not held by Nov. 14.

It had said on Thursday that it would consider boosting its bid if allowed access to the nonpublic information.

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Jos. A. Bank made its unsolicited offer of $48 per share for Men’s Wearhouse in September, and the following month Men’s Wearhouse rejected the bid, calling it ‘‘opportunistic’’ and ‘‘inadequate.’’

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On Monday, Men’s Wearhouse Inc. said its board met with external financial and legal advisers and determined with them that it was not in shareholders’ best interest to give Jos. A Bank access to the information.

Houston-based Men’s Wearhouse maintains that Jos. A. Bank’s $48 per-share offer significantly undervalues its business.

‘‘We are enthusiastic about Men’s Wearhouse’s prospects and are confident that our strategic plan will deliver more value to our shareholders than Jos. A. Bank’s inadequate, highly conditional proposal,’’ Men’s Wearhouse’s president and CEO, Douglas Ewert, said in a statement.

Jos. A. Bank sells men’s tailored and casual clothing, sportswear, and footwear.

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Men’s Wearhouse sells men’s sportswear and suits through its namesake chain of stores, as well as at the Moores and K&G retail chains. It is trying to raise the average ticket price and announced in July that it’s buying the upscale brand Joseph Abboud for about $97.5 million in cash.

Shares of Men’s Wearhouse dropped $1.20, or nearly 3 percent, to close at $42.14. Jos. A. Bank’s stock declined 25 cents to $47.71.