Genesco Inc.'s board of directors may have rebuffed Foot Locker, Inc. in its unsolicited proposal to acquire all of the outstanding GCO shares, but it looks like they left the door open for a better offer. A public letter writing campaign commenced earlier this month when Foot Locker Chairman and CEO Matt Serra went public with their offer to acquire Genesco for $46.00 per share in cash. Serra said he went public with the offer after GCO Chairman and CEO Hall Pennington failed to respond to a letter sent on April 4.

GCO went public with their own letter last Monday, indicating that, “after careful consideration,” the company’s Board of Directors, in consultation with its financial advisor and legal advisor, had unanimously determined that the $46.00 per share cash proposal was “not in the best interests of the company's shareholders.”

“Our Board unanimously rejected the proposal and concluded that it did not reflect the long-term value of Genesco, including its strong market position and future growth prospects,” said Pennington, in a press release.

Pennington's letter stated that initial communications between the two companies suggested that Foot Locker had an interest in making a proposal to buy Genesco for $48 to $50 per share in cash and that Foot Locker could “go higher” in their efforts.

Now we'll have to see what “higher” means… The market has already built in some float, with GCO shares closing at $50.75 on Friday, up just 1.5% for the week…