Genesco Inc. won’t be a major Finish Line Inc. stockholder for long.
Tennessee-based Genesco received a 12-percent stake in Indianapolis-based Finish Line under a settlement the two companies negotiated last month. The pact canceled the agreement Finish Line struck in June 2007 to buy Genesco for $1.5 billion.
Regulatory filings show the settlement requires that Genesco pass on those 6.5 million shares to its stockholders as a dividend. Finish Line took the first step in that process late last week by filing a registration statement for the shares with the Securities and Exchange Commission.
Finish Line’s shares have shot up since the companies canceled their merger. Based on the company’s current stock price of $5.80, Genesco investors will receive shares worth about $38 million.
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