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

Act now to keep receiving just-style newsletters

You may have noticed a red alert bar at the top of just-style’s weekly and daily newsletters asking you to “Act now to keep receiving the just-style newsletter.” ...

BLOG

Apparel imports into the US rose in June

Apparel imports into the US rose in June as merchants stocked up for summer and prepared for the back-to-school season, with imports from Vietnam continuing to surge....

BLOG

US retailers under pressure to grow sales as mall traffic slows

Under Armour is to close stores and cut jobs – around 2% of the company's global workforce – as part of new plans to build a stronger and smarter company with faster go-to-market speed and greater dig...

BLOG

Agile logistics key to new hybrid retail world

US retail giant Walmart has topped a list of the fastest growing retailers thanks to its investment in ensuring it has the right balance between its online and brick and mortar operations....

just-style homepage



Forgot your password?