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.

To continue reading this article...

To Read the Full Article

Tap into our Global Network

Of Industry Leaders and Designers

load comments
blog comments powered by Disqus