In a market environment that tends to see a new acquisition or merger deal each week, it now appears that the absence of a deal after some wild speculation now garners as much attention. It is interesting to note that while the stock market has been on a tear since the beginning of the year, the biggest headlines in this market are coming out of the battle for the mall, where results have been anything but stellar.

Genesco announced on Thursday that its Board of Directors had unanimously rejected the latest overture by Foot Locker, Inc., this time in the form of a proposal to acquire all outstanding common stock for $51.00 per share in cash, subject to due diligence. In mid-April, Foot Locker, Inc. made public its attempts to acquire all of the outstanding stock of GCO for $46 per share. Genesco went public with their own response, rejecting the offer, but leaving the door open for a higher offer.

The GCO board apparently believes they have an even bigger opportunity in the market and has authorized the company and its advisers to “explore strategic alternatives which maximize shareholder value, including a possible sale of the company.” A sell-off of the individual units, which include Journeys, Underground Station, and Johnston & Murphy, may not be out of the question either. The GCO board invited Foot Locker to participate in the company's process on the same terms as other interested parties to date.

Foot Locker, Inc. confirmed that it had made the $51 per share proposal to Genesco, but said that, “in light of Genesco's recent public release,” it was no longer pursuing its proposal.

In other non-acquisition news, Forzani Group Ltd., which owns the Forzani, Sport Chek, and Sports Results chains, and operates the Nevada Bob’s business in Canada, has reported that it is not about to be acquired. The report from FGL was prompted by a number of published reports that had it close to a deal with Cerberus Capital Management. Cerberus recently sold off the Fila business that was part of its Sports Brand International division and recently announced that it was buying control of Chrysler. There was also speculation about a second private equity firm, Apollo Management LP, as well as Forzani’s largest competitor, Canadian Tire, showing interest.