Jos. A. Bank Clothiers Inc. told shareholders to reject a $1.61 billion takeover proposal from Men’s Wearhouse Inc., saying it undervalues the company.

The $57.50-a-share offer, higher than a previous bid and a 38 percent premium to the closing price on Oct. 8, isn’t in shareholders best interest, Hampstead, Maryland-based Jos. A. Bank said today in a filing. The retailer has said it is seeking its own acquisitions to bolster shareholder value.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.