In an statement issued Wednesday, The Men’s Wearhouse, Inc. (NYSE:MW) rejected the unsolicited offer from its smaller rival Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB). The Men’s Wearhouse, Inc. (NYSE:MW) board said that the offer “significantly undervalues” the Houston-based company. It said the unsolicited merger offer wasn’t in the best interest of The Men’s Wearhouse, Inc. (NYSE:MW) or its shareholders. In an aggressively worded statement, The Men’s Wearhouse, Inc. (NYSE:MW) lead director Bill Sechrest said that the proposal was opportunistic. It would deprive The Men’s Wearhouse, Inc.(NYSE:MW) shareholders of the company’s actual value.

Men's Wearhouse

Men’s Wearhouse can achieve greater shareholder value

The Men’s Wearhouse, Inc. CEO Doug Ewert said that the company’s management team and board are committed to boost shareholder value. Ewert said his team is enthusiastic about the company’s future prospects. He said Men’s Wearhouse Inc. (NYSE:MW) can achieve much greater shareholder returns compared to its rival’s inadequate and unsolicited offer.

Jos. A. Bank Clothiers Inc (NASDAQ:JOSB) made an unsolicited offer to acquire The Men’s Wearhouse, Inc.(NYSE:MW) in a $2.3 billion deal. That would have created a men’s apparel chain with more than 1,700 stores. Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB) offered to pay $48 per share, or 36 percent premium to Men’s Wearhouse Inc. (NYSE:MW)’s closing price on Tuesday. Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB) said it will fund the deal with cash, debt and new equity capital.

JOSB wanted to capitalize on Men’s Wearhouse’s weak prospects?

In June, Jos. A. Bank Clothiers Inc. (NASDAQ:JOSB) said that it is looking for a number of strategic opportunities, including potential acquisitions, to boost shareholder value. The Hampstead, Maryland-based company has over 600 stores and a market value of $1.17 billion. The company has been in the business for well over a century. Men’s Wearhouse Inc. (NYSE:MW) has 1,137 stores and a market value of $1.7 billion.

The Men’s Wearhouse, Inc. (NYSE:MW) was founded by George Zimmer in 1973. Zimmer gained popularity for coining the punchline, “You’re going to like the way you look.” However, the company fired him abruptly in June of this year. Men’s Wearhouse Inc. (NYSE:MW) said that Zimmer was pressing to take the company private and become its sole decision-maker. As of July 22, George Zimmer had a 3.7 percent stake in the company.

In its latest quarter, The Men’s Wearhouse, Inc. (NYSE:MW) missed Wall Street expectations, and issued weak guidance for the full year. Its shares jumped 25.40 percent to $44.19 at 10:25 AM EDT.