Ahead of the Bell: Jos. A Bank Clothiers
NEW YORK (AP) — Jos. A Bank slid in trading before Monday's opening bell as it continued to resist takeover attempts by Men's Wearhouse and, over the weekend, questioned the possible reaction from antitrust regulators to the $2.3 billion deal.
In a letter Sunday, directors with Jos. A. Bank said that Men's Wearhouse had yet to explain why the Federal Trade Commission would approve such a deal, noting that the FTC had sent Men's Wearhouse a second request for information.
The two retailers have been trading barbs since October when Jos. A. Bank, based in Hampstead, Md., offered $2.3 billion for Men's Wearhouse.
Men's Wearhouse, based in Fremont, Calif., rejected that bid, also citing antitrust issues. But it then countered with a $1.61 billion offer to buy Jos. A. Bank.
"Since making your offer on November 26, 2013 for Jos. A. Bank, you have not updated your views regarding the antitrust risk," the directors wrote Sunday. "Should our stockholders assume that when Men's Wearhouse made its offer it still believed a combination raised 'significant antitrust concerns?'"
Men's Wearhouse said Thursday that it may be willing to pay more after Jos. A Bank rejected the bid last month.
In premarket trading, shares of Jos. A Bank Clothiers Inc. fell $2.22, or 4 percent, to $54. Shares of The Men's Wearhouse Inc. were unchanged.