The Finish Line says Genesco is in breach of merger agreement
The Finish Line Inc. says Genesco Inc. has yet to supply the necessary financial records it requires to close their merger.
On Friday, Genesco., No. 325 in the Internet Retailer Top 500 Guide, filed suit in Chancery Court in Nashville, Tenn., seeking an order for The Finish Line and UBS Securities LLC to complete the transaction. UBS has indicated it would provide up to $1.6 billion in financing to facilitate the deal.
But now The Finish Line, No. 154 in the Internet Retailer Top 500 Guide, is responding that Genesco hasn’t supplied all the necessary financial documents or provided enough access to senior financial executives. “The Finish Line has asked Genesco for certain financial and other information as well as access to Genesco`s chief financial officer and financial staff,” the retailer says. “However, to date Genesco has not responded to and has refused to comply with these requests. These failures constitute a breach of the merger agreement.”
On Sept. 17, Genesco shareholders approved the deal, which calls for The Finish Line to acquire all of the outstanding common shares of Genesco for $54.50 per share in cash. Genesco hasn’t responded to The Finish Line’s latest statement and no court dates have been set.
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