HOUSTON, Jan. 6 (UPI) -- U.S. clothing retailer Men's Wearhouse Inc. said Monday it would offer $1.6 billion to buy rival Jos. S. Bank, announcing a cash tender to push the proposal.
Men's Wearhouse, which is based in Houston, said it would pay $57.50 per share in cash, a 52 percent premium over the Oct. 8 closing price, comparing its offer to the share prices just before stories of the company's pursuit of Jos. A. Bank became public.
The Wall Street Journal reported the price was a 5.7 percent premium over Friday's closing price.
The board of Jos. A. Bank said it would consider the offer, the latest in a series of proposals that have gone back and forth between the rival companies.
The Jos. A. Bank board also urged shareholders not to sell before it had a chance to make a recommendation, which would be filed with the Securities and Exchange Commission by Jan. 17, the company said.
"Although we have made clear our strong preference to work collaboratively with Jos. A. Bank to realize the benefits of this transaction, we are committed to this combination and, accordingly, we are taking our offer directly to shareholders," said Men's Wearhouse Chief Executive Doug Ewert.
Jos. A. Bank has already turned down an offer of $1.5 billion, which came to $55 per share. Last week, the company changed its shareholder threshold from 20 percent to 10 percent, which would slow and possibly derail a hostile takeover by giving the board the right to intervene if any one shareholder became too influential.
Prior to that, Jos. A. Bank offered in early October to buy Men's Wearhouse for $2.3 billion.