Foot Locker Publicly Announces Offer To Purchase Genesco
Foot Locker has made a proposal to purchase all outstanding shares of Genesco Inc. for $46 per share in cash. The offer, which values Genesco at $1.2B, provides shareholders a 26% premium over the average share price during the one-year period preceding an April 4 letter to Genesco containing the proposal. At presstime, shares of Genesco were trading at $48.90, up 12.65% from yesterday’s close of $43.41. Genesco in a statement said its BOD will consider the proposal with the assistance of financial advisor Goldman Sachs and “expects to respond in due course” (THE DAILY). CNBC’s David Faber said, “Apparently, the [April 4] letter was not well received or not responded to at all, hence a follow-up that was made public.” Faber cited Merrill Lynch as saying that Foot Locker “could comfortably pay up to $1.5[B], suggesting up to $54 a share.” Faber said Foot Locker “wants to take its exposure to Nike way down. When you think about how much influence Nike has on Foot Locker, you might understand that” (“Squawk Box,” CNBC, 4/20).
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