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BREAKING: Finish Line to settle suit

March 3, 2008
Finish Line Inc. and Genesco Inc. are close to a settlement that would cancel the Indianapolis company's $1.5 billion acquisition of the Tennessee retailer.

The two firms this morning asked a New York City federal judge for a one-day delay to a trial that was set to start this morning over whether Swiss financial giant UBS is obligated to finance the deal. They said the delay will give them time to complete their settlement.

In return for getting out of the deal, UBS and Finish Line would pay Genseco $175 million in cash and give it stock in Finish Line equal to 12 percent of the outstanding shares.

Finish Line negotiated the purchase last summer before credit markets slid into disarray and before the performance of both companies deteriorated. Genesco is the parent of Hat World, Journeys and other mall chains. Finish Line pursued the acquisition in an attempt to diversify away from the topsy-turvy athletic footwear and athletic apparel business.

Finish Line shares shot up 48 percent, to $4.22, on the news.

This story will be updated.
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