Genesco, Finish Line Agree to Settlement
Nashville, Tenn. Genesco Inc. announced on Monday it has agreed to end a legal battle to compel Finish Line Inc. and UBS AG to proceed with a proposed $1.5 billion buyout of the specialty retailer.Nashville
The proposed settlement, which must be approved by the companies' boards, would require UBS and Finish Line to pay Nashville-based Genesco $175 million in cash and 12% of Finish Line's outstanding common stock.
Both Genesco and Finish Line boards were scheduled to meet on Monday on whether to approve the settlement deal.
Finish Line and UBS had been trying to get out of the deal they offered in June, claiming that Genesco was not forthcoming about its financial situation. UBS is the investment bank hired to finance the buyout.
Monday's announcement of a settlement came on the same day that a trial on a federal lawsuit was scheduled to begin in New York federal court. As part of the settlement, court cases in both New York and Tennessee would end.