Court orders completion of Genesco merger
In what could easily be termed the Genesco fiasco, the Chancery Court for the State of Tennessee has ordered The Finish Line, Inc. to complete the terms of its merger agreement with footwear retailer Genesco, stating that all the conditions of the merger agreement have been met by Genesco and that that Finish Line has breached the agreement by not closing the deal.
Commenting on the decision chairman and chief executive of Genesco, Hal Pennington said: "We are gratified by chancellor Lyle's order and appreciate her detailed findings of fact and conclusions of law set forth in the 43-page Memorandum and Order.” He added: “We look forward to working with The Finish Line to consummate the merger expeditiously.”
Another court case over the ‘failed’ merger involving Swiss bank UBS is still to be concluded.
The Finish Line tried to back out of its merger with Genesco in August when the company reported much lower than anticipated financial results, and accused Genesco of making false and misleading statements concerning the position of the business.
