Monday, March 3, 2008
Genesco Inc. and The Finish Line reached a settlement that terminated both their merger agreement and the financial commitment that Finish Line had with UBS, just before start of a trial in Tennessee. UBS and Finish Line will pay Genesco a total of $175 million in cash along with shares of Finish Line common stock equal to 12 percent of Finish Line’s outstanding shares of stock after the shares are issued. Genesco and Finish Line would then enter into a mutual standstill agreement. Last June Finish Line agreed to acquire Genesco but later said that UBS had doubts about Genesco's financial performance, which led to Genesco's lawsuit to compel Finish Line to complete the deal. CFO.com, Shoe Merger Comes Untied.