Finish Line fails to stop deal
03/01/2008
Athletic apparel and footwear retailer Finish Line has so far failed to halt a deal it signed up to last year to acquire specialist footwear retailer Genesco.
Finish Line agreed to pay $1.5 billion to acquire Genesco, but later said it had concerns about some of the target company's accounting information and tried to back out. This week, a court in Tennessee refused it permission to do so.
A further legal challenge to the deal lies ahead. In New York, investment bank UBS is also trying to back out of a commitment it made to provide funding for the deal, saying it fears the combined Genesco-Finish Line will go bankrupt.
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