Blog: Leonie BarrieGenesco says yes

Leonie Barrie | 18 September 2007

Was there really any doubt that Genesco shareholders wouldn’t vote in favour of the company’s sale to The Finish Line for $1.5bn? After all, the deal is worth $54.50 in cash per share – and Genesco shares are currently hovering around the $44.40 mark. And making the best return on investment was clearly a major concern since the retailer rejected two earlier takeover bids from Foot Locker for being too low.

Perhaps it’s unfair to compare share prices since these have plunged in recent days on news that Finish Line’s bankers were getting itchy feet around the deal. But this, in turn, was prompted by Genesco’s unexpected second quarter loss of $4.2m or 19 cents per share.

At the end of last month there was still market optimism that the Genesco buyout would take place, but that Finish Line would seek to renegotiate the deal for a lower price if it could prove that a permanent change had happened to Genesco's business. Likewise, UBS could pull out if Genesco's financial health deteriorated substantially. But time is running out for any last-minute manoeuvres given that the transaction is due to close this autumn.

Genesco shareholders OK sale to Finish Line


BLOG

Why digital supply chains are top of mind

Confirmation that digital supply chains are top of mind for apparel industry executives came last week with the latest plans from global sourcing specialist Li & Fung....

BLOG

Navigating global political frictions and economic uncertainty

As a barometer of the issues top of mind for apparel sourcing executives, it is hard to beat the annual Prime Source Forum in Hong Kong. ...

BLOG

Trump and Brexit generate more confusion

Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...

BLOG

Bangladesh works to resolve labour activist issues

The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...

just-style homepage



Forgot your password?