Men's Wearhouse and Jos. A. Bank open to discussion

After a series of rejected offers and letters sent, advisers for The Men's Wearhouse Inc.,

and Jos. A. Bank Clothiers will start a series of talks to discuss future possibilities of merging the two men's wear chains.

President and CEO of Men's Wearhouse, Douglas S. Ewert, responded late last week to a letter sent on Thursday by Robert Wildrick, chairman of Jos. A. Bank, who wrote that their company board had “authorized” a meeting between the two companies.

The arranged talks would then “establish a process that will enable [Men's Wearhouse] to advise [Jos. A. Bank] boards as to the highest price they are prepared to pay in an acquisition of Jos. A. Bank,” wrote Wildrick reported Reuters.

Ewert replied that he would return a signed confidentiality agreement, which entails a few small changes to Wildrick's suggestion before the talks and due diligence would start, adding that Men's Wearhouse also wishes to make a cash deal, according to WWD.

The latest offer Men's Wearhouse submitted to Jos. A. Bank was 63.50 dollars per share, but it has been rejected, as Jos. A. Bank remains open for discussion. Men's Wearhouse previously stated they were willing to offer as high as 65 dollars a share, under fixed conditions such as the finalization of its due diligence and if Jos. A. Bank revokes its current offer to obtain Eddie Bauer from Golden Gate Capital for 825 million dollars.