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

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...

BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

just-style homepage



Forgot your password?