GENESCO, FINISH LINE AGREE TO SETTLEMENT
Mar 3, 2008
Genesco Inc. announced on Monday it has agreed to end a legal battle to compel Finish Line Inc. and UBS AG to proceed with a proposed $1.5 billion buyout of the specialty retailer. On Friday, the Tennessee Court of Appeals declined to immediately take up Finish Line's appeal in a move that could have hastened working out a settlement, said LUKE FROEB, a professor at Vanderbilt University's Owen Graduate School of Management who has followed the case. "The settlement amount, it surprises me they (Genesco) settled for so little, but you're bargaining in the shadow of the law," he said. "Maybe the costs of litigation were actually prohibitive, so nobody wanted to bear that cost. "Genesco obviously thought their chances at trial were not that good. They may have inferred they weren't going to get very much."