Men's clothing retailer Jos. A. Bank said it would cancel its $2.3 billion bid for U.S. rival Men's Wearhouse Inc., which allowed a deadline on talks to pass.
The company, however, did not rule out the possibility of striking a deal later, The Wall Street Journal reported.
"Jos. A. Bank continues to believe that a transaction could be in the best interest of therespective shareholders of the two companies," the company said in a statement.
"If, in the future, we are invited by the Men's Wearhouse board to discuss our acquisition of Men's Wearhouse, or if circumstances were otherwise to change, Jos. A. Bank may consider whether a new proposal to acquire Men's Wearhouse is warranted," the statement said.
A major Men's Wearhouse shareholder, Eminence Capital LLC, expressed disappointment in the company's board, which missed Jos. A. Bank's deadline for talks, which was Thursday.
"Eminence Capital believes that by allowing yesterday's deadline to expire, the board has confirmed that it is not committed to exercising its basic fiduciary duties to shareholders and is satisfied with the status quo," Eminence said.
The hedge fund owns 9.8 percent of Men's Wearhouse, the Journal said.
In October, Jos. A. Bank gave Men's Wearhouse a deadline of Thursday to allow it to look though its books. But the Men's Warehouse board responded by rejecting the bid from its rival, which offered $48 per share.
Men's Warehouse said the offer was too low.