Court ruling spurs Genesco shares higher
Court Alerts
Shoe and hat retailer Genesco Inc on Friday said a Tennessee court has ordered The Finish Line Inc to complete its acquisition of the company for $54.50 a share, or $1.5 billion, sending Genesco shares up as much as 16 percent.
Finish Line, whose stock fell as much as 25 percent, has been trying to walk away from its June agreement to buy Genesco.
Genesco, based in Nashville, Tennessee, said the court ruled that Finish Line had breached their merger agreement.
"We look forward to working with The Finish Line to consummate the merger expeditiously," Genesco Chief Executive Hal Pennington said in a statement.
Swiss bank UBS sued both companies last month in federal court in New York in a bid to be relieved of its obligation to fund the deal.
Genesco, meanwhile, separately sued Finish Line and UBS in Tennessee in an attempt to force completion of the agreement.
"The only hurdle at this point is insolvency, and whether or not UBS can prove the combined entities would in fact be insolvent and not able to make interest payments and therefore possibly file for bankruptcy," Susquehanna Financial analyst Christopher Svezia told Reuters.
"That's part of the reason why you're seeing Genesco move, but you're not seeing it trade up to $50. There's a lot that needs to get settled here," said Svezia, whose firm has "neutral" ratings on both stocks.
The Tennessee court reserved judgment on whether the combined company would be solvent, saying it would await a ruling in the suit filed by UBS, Genesco said.
Related listings
-
America's Cup syndicates continue court fight
Court Alerts 12/27/2007The legal skirmish over the America's Cup showed no sign of ending, with the champion Swiss syndicate asking a judge to reconsider his decision to declare the Golden Gate Yacht Club the main challenger for the next race.Alinghi's lawyers contended th...
-
3 Plead Not Guilty in Malibu Fire Case
Court Alerts 12/24/2007Three men pleaded not guilty Friday to causing a wildfire that destroyed 50 homes in Malibu, and their lawyers said outside court they were being made scapegoats by an outraged community.Attorneys entered not guilty pleas for Brian David Franks, 27; ...
-
Lottery Ticket Dispute Heads to Court
Court Alerts 12/23/2007What was supposed to be a festive New England Christmas tradition has turned sour for two former friends who are taking their fight over a $200,000 winning lottery ticket to court.Brenda White, 55, of Plaistow, N.H., won the $200,000 on a Massachuset...
Grounds for Divorce in Ohio - Sylkatis Law, LLC
A divorce in Ohio is filed when there is typically “fault” by one of the parties and party not at “fault” seeks to end the marriage. A court in Ohio may grant a divorce for the following reasons:
• Willful absence of the adverse party for one year
• Adultery
• Extreme cruelty
• Fraudulent contract
• Any gross neglect of duty
• Habitual drunkenness
• Imprisonment in a correctional institution at the time of filing the complaint
• Procurement of a divorce outside this state by the other party
Additionally, there are two “no-fault” basis for which a court may grant a divorce:
• When the parties have, without interruption for one year, lived separate and apart without cohabitation
• Incompatibility, unless denied by either party
However, whether or not the the court grants the divorce for “fault” or not, in Ohio the party not at “fault” will not get a bigger slice of the marital property.