Shoe and apparel retailer Genesco Inc. won a court battle against its US1.5 billion sale to The Finish Line when a judge ruled that buyers had no grounds for getting out of the deal.
Genesco Inc. has at least one more legal battle to win before the sale can go through.
Investment bank UBS AG has filed a separate lawsuit in federal court in New York seeking to have declared void its commitment to finance most of the deal because the combination of Genesco and Finish Line would likely go bankrupt.
Steven Davidoff, assistant professor of law at Wayne State University in Detroit, who focuses on takeover issues, said that UBS may try to persuade Genesco to settle the lawsuit and agree to a lower buyout price instead of potentially losing the case.
Nashville-based Genesco operates 2,000 retail stores in the United States and Canada under brand names like Journeys, Johnston & Murphy and Hat Shack, and is about twice the size of Finish Line.
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