In response to The Finish Line's announcement regarding concerns about its ability to finance its merger with Genesco Inc., Genesco Inc. put out a statement saying it “reiterates that no “material adverse effect” under the previously announced merger agreement with Finish Line has occurred with respect to Genesco.” It also noted that Genesco's special shareholder meeting to consider and approve the proposed merger with The Finish Line is scheduled for Monday, September 17, 2007, at 11:00 a.m.
As reported, The Finish Line said on Friday that UBSraised concerns about the financial health of Genesco Inc, warning that it may terminate its agreement to fund Finish Line's $1.5 billion purchase of the shoe and hat retailer. Finish Line said Swiss bank UBS, which had agreed to finance the deal, had asked for Genesco's financial records so it could determine whether a “material adverse change” had occurred in Genesco's business.
