HAMPSTEAD, Md. (AP) — Jos. A. Bank withdrew its $2.3 billion offer to buy rival Men's Wearhouse.
Shares of Men's Wearhouse dropped almost 7 percent in premarket trading Friday.
Jos. A. Bank made an unsolicited offer of $48 per share for Men's Wearhouse Inc. in September. Men's Wearhouse rejected the bid in October, calling it "opportunistic" and "inadequate."
In late October Jos. A. Bank Clothiers Inc. announced that it would terminate its bid by Nov. 14 if there continued to be no discussions on the proposal. The company says it still believes that a deal could be in the best interest of both companies' shareholders.
An email was sent seeking comment from Men's Wearhouse.
Jos. A. Bank had previously said it would be open to raising its offer if allowed to assess whether an increased bid is justified. But Men's Wearhouse wouldn't give the company access to nonpublic information.
On Friday Jos. A. Bank said that if the board of Men's Wearhouse decides in the future that it wants to discuss a potential acquisition, or if circumstances otherwise change, that it may consider whether a new bid for its rival is warranted.
Jos. A. Bank sells men's tailored and casual clothing, sportswear and footwear. While it targets a more established male professional, it's known for generous promotions like buying one suit or sport coat and getting three for free.
Men's Wearhouse sells men's sportswear and suits through its namesake chain of stores, as well as the Moores and K&G retail chains. Recently, the Houston company has been going after younger shoppers with suits featuring slimmer silhouettes. It's also trying to raise the average ticket price and announced in July that it's buying upscale Joseph Abboud brand for about $97.5 million in cash.
Shares of Men's Wearhouse fell $3.11, or 6.7 percent, to $43.01 per share in premarket trading Friday.