Genesco sues The Finish Line to complete acquisition
Genesco Inc. announced after the opening that it is suing The Finish Line, Inc. (Nasdaq: FINL) to complete its $1.5 billion buyout of the shoe and accessory retailer.
The lawsuit seeks an order to enforce Finish Line's agreement with investment bank UBS AG to finance most of the deal. UBS Loan Finance and UBS Securities said earlier this week that it was temporarily halting its processing of the takeover as it sought more information on the financial health of Genesco.
“No more delays by The Finish Line and UBS; no more reservation of rights; no more bankers putting their pencils down,” Genesco CEO Hal Pennington said in a statement. “We want a court of competent jurisdiction to enforce our rights under the merger agreement and for The Finish Line and UBS to live up to their obligations.”
In afternoon trading, shares of FINL are down 0.76%, or $0.04, at $5.25. Over the last 52 weeks, shares have ranged from $4.90 to $14.97.
