Foot Locker makes $1.2 billion offer for Genesco

After weeks of speculation that such a deal might be in the works, New York-based Foot Locker Inc. makes an all cash bid for the Nashville company

Email | Print By Walker Duncan

Nashville's oldest publicly traded company is officialy in play for a possible takeover.

Foot Locker Inc. this morning made public an unsolicited offer of $46 per share to buy Genesco Inc., and the apparel retailer says it has retained Goldman Sachs to review the bid.

The all-cash offer comes to $1.2 billion.

Women’s Wear Daily initially sparked speculation that Foot Locker might be on the prowl back in March. In that first article it listed Genesco as a possible target. Since then the rumors have ebbed and flowed until Tuesday of this week when the New York Post restarted the rumor mill by claiming negotiations were already underway between the two companies.

Now the bid is on the table, but will it be enough?

The offer price represents a 26 percent premium over Genesco’s average share price in the last year. However, Genesco’s stock has been riding high recently on the back of the buyout rumors. Shares closed yesterday at $43.41, just shy of the recent 52-week high of $44.18.

Today, shares have exploded, climbing to $48.94 in the first half-hour of trading, a jump of 12.74 percent. As of 9:55, the stock is at $48.81 on very heavy volume.

Founded in 1925 as a manufacturer under the name General Shoe Corp., Genesco grew under ambitious CEO Maxey Jarman into one of the nation's largest apparel conglomerates by the 1950s. The company, which went public in 1939, was an original member of the S&P 500 stock index when it was created in 1957.

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