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 trade probe could have costs for cotton

An International Trade Commission hearing got underway last week as part of the Trump administration's probe into China's intellectual property practices under Section 301 of the 1974 Trade Act. The a...

BLOG

Stop negotiating and bring in the engineers

Surviving in a declining market is the biggest challenge for discount/mass-market retailers and suppliers of commodity products such as basic T-shirts, hoodies or cotton men's shirts – which is why it...

BLOG

The implications of buyer purchasing practices

New research has delved into one relatively underexplored aspect of global supply chains: how buyer purchasing practices impact wages and working conditions....

BLOG

just-style readership survey 2017 – Final reminder

We’re currently carrying out a survey to get a better understanding of the issues that matter the most to our readers, and how we can better serve you in the future. ...

just-style homepage



Forgot your password?