Genesco to merge, not with Foot Locker

INDIANAPOLIS and NASHVILLE, Tenn. Less than a month after rejecting Foot Locker's acquisition bid, Genesco has agreed to a merger with The Finish Line, a mall-based specialty retailer operating under the Finish Line, Man Alive and Paiva brand names. According to The Finish Line, both companies unanimously agreed that The Finish Line will acquire all of the outstanding common shares of Genesco for $54.50 per share in cash. The total transaction value is approximately $1.5 billion. The transaction is expected to be completed in Fall 2007.

On May 31, Foot Locker and Genesco announced that Genesco had rejected Foot Locker's second bid to buy the company. According to Genesco, Foot Locker's proposal was not in the best interest of the company's shareholders. Following Genesco's decision, Foot Locker said it would no longer pursue the acquisition.

According to Genesco's ceo Hal Pennington, however, a merger with The Finish Line was in the company's best interest. "Genesco and The Finish Line share similar philosophies that promote a strong team culture and the spirit of creativity. These value systems, which have long distinguished our companies, will continue to define the next chapter of our history together," said Pennington.