Genesco has sued its would-be buyer, Finish Line, in Davidson County Chancery Court to make sure its deal goes through under the original acquisition terms and stave-off attempts to restructure the deal's financing.
The lawsuit comes after Genesco CEO Hal Pennington’s less than cordial response to UBS’s request for additional information concerning Finish Line’s proposed $1.5 billion acquisition of the Nashville company.
Genesco's 34-page complaint (available at this link) makes one point very clear: “Genesco will not renegotiate the merger agreement.” The company spells-out its view even more directly farther down the page: “to put it simply, a deal is a deal.”
The Nashville shoe retailer is asking the court to issue an order, in hope of ensuring Finish Line's financing agreement with UBS is enforced and executed.
According to a statement put out by Genesco in conjunction with the filing, the company wants “a court of competent jurisdiction to enforce our rights.” Presiding independent director Robert V. Dale chimed in later in the release stating, “our board of directors stands united in this call for The Finish Line and UBS to perform their obligations and pay our shareholders $54.50 per share.”
In the last few days, Genesco has lashed out at both Finish Line and UBS for attempting to back out of the deal, accusing both companies of buyer's remorse.
Overton Thompson III, Britt K. Latham, W. Brantley Phillips, Jr., Brian D. Roark, and Russell E. Stair, all of Bass Berry & Sims filed the complaint on behalf of Genesco.