Genesco to pay stock dividend June 13 as a result of Finish Line settlement

By Lisa Kerner

Charlotte, N.C., June 4 - Holders of Genesco Inc. stock as of May 30 will be entitled to receive 0.339931 of a share of the Finish Line, Inc. class A common stock for each share of Genesco common stock, or a total of about 6.51 million Finish Line shares, Genesco announced on Wednesday.

Cash will be paid in lieu of any fractional shares, and the distribution is expected to occur on June 13, a Genesco news release stated.

Genesco said the distribution is the result of a March settlement agreement among Genesco, Finish Line, UBS LLC and UBS Loan Finance LLC.

The settlement agreement effectively terminated the proposed merger of Genesco and Finish Line as well as the financing commitment from UBS to Finish Line.

It was previously reported that UBS and Finish Line would pay Genesco $175 million in cash along with 6,518,971 class A shares of Finish Line common stock.

On Sept. 17, 2007, Genesco shareholders approved the June 18, 2007 merger agreement that would have given them $54.50 in cash, without interest, for each share of Genesco common stock they own. The transaction, valued at an estimated $1.5 billion, was slated to close in the fall.

Both Genesco and Finish Line are specialty retailers. Genesco is based in Nashville, and Finish Line is based in Indianapolis.

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