Taking stock: O'Charley's settles, Genesco to launch buyback

Activist investor to take three board seats at restaurant company

Email | Print By Geert De Lombaerde

O'Charley's has struck a deal with Crescendo Partners, the activist investor that three months ago proposed major changes at the Nashville company.

Crescendo, which owns about 12 percent of O'Charley's shares (Ticker: CHUX), will take up three seats on the company's expanded board – it demanded four in December – after current director John Stokely steps down.

Shares of O'Charley's are down about 25 percent since Crescendo made its move late last year. To read the companies' agreement, click here.

Genesco board OKs $100M buyback

Embattled Genesco Inc. will buy back $100 million of its stock, using cash from its recent settlement with remorseful buyer Finish Line and investment bank UBS.

CEO Hal Pennnington said the plan shows management's confidence in Genesco's long-term value. Shares of the company – valued last year by Finish Line at more than $50 – are trading around $20.

"Based on our perception of the Company's intrinsic value, we expect to be an active buyer at current market prices," Pennington said.

Also this morning, the company (Ticker: GCO) said it earned $4.1 million last quarter, down from $35.3 million the year before. Sales were up 3 percent to $1.5 billion.

For its fiscal 2009, the company lowered its EPS range to between $1.83 and $1.91. Analysts had been forecasting $1.93.