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In Brief: Genesco Says No… Zara In California… Draddy To Polo

Genesco Inc. on Monday formally rejected Foot Locker's $1.2 billion bid for all outstanding shares of the company, or $46 per share.

GENESCO SAYS NO: Genesco Inc. on Monday formally rejected Foot Locker’s $1.2 billion bid for all outstanding shares of the company, or $46 per share. Genesco’s Hal N. Pennington, chairman and chief executive officer, said in a statement that its 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.” In a publicly disclosed letter to Matthew D. Serra, chairman and ceo of Foot Locker, Pennington said when on two prior occasions there were discussions regarding Foot Locker’s interest, Serra had indicated a proposal of between $48 and $50 per share in cash. Pennington also noted a phone conversation in which Serra allegedly indicated his firm could “go higher” in a bid for Genesco. A spokesman for Foot Locker said the company is hoping to do some due diligence, and if it sees some value, it might offer a higher price. He also said, “We are considering our other options.”

ZARA IN CALIFORNIA: Spanish fast-fashion chain Zara has said it will open a 17,000-square-foot store on Hollywood Boulevard in Los Angeles in summer 2008. The retailer will occupy half of the first two floors of a 55,000-square-foot, three-story building recently acquired by real estate investment firm The CIM Group, which also owns the Hollywood & Highland shopping center across the street from the site. The Zara store will be located doors away from a 10,000-square-foot Hennes & Mortiz (H&M) store scheduled to open this fall.