Genesco (NYSE: GCO) reported disappointing results for its second quarter, and now its agreement to be acquired by Finish Line (NASDAQ: FINL) may be in jeopardy.
Finish Line "issued a statement" regarding Genesco's results. According to the press release, "The Company is disappointed with Genesco's second quarter fiscal 2008 financial results ... the Company is evaluating its options in accordance with the terms of the merger agreement. The Company does not intend to make further comments at this time."
Sounds like it's going try to find a way to back out of the deal. Shareholders for both companies have spoken up about how they feel about that. Genesco has wilted 13% on the news and Finish Line is up more than 12% -- on news that it will consider its options with regard to a previously-announced merger.
It's not yet known whether Finish Line will be able to back out of the deal, and at what cost. But given how positively the Street reacted to the possibility of Finish Line backing out, the management has to be dying to get out of this thing.
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