Finish Line-Genesco Buyout Trial Ends
Nashville, Tenn. Genesco Inc. asked a judge Tuesday to force The Finish Line Inc. to close on its $1.5 billion buyout even if it no longer has financing for the highly leveraged deal.
Genesco's lawyers said in closing arguments that Finish Line and investment bank UBS AG failed to prove that Genesco had suffered a “material adverse effect,” or a fundamental financial flaw that prevents it from making money.
They also denied fraud allegations that Genesco had purposefully hidden crucial financial information during the buyout negotiations over the $54.50-per-share deal.
Genesco rejected a slightly less generous buyout offer from Foot Locker Inc. in favor of the highly leveraged deal from Finish Line in June.