Footwear retailers shares are skyrocketing on a new report that a British retailer may be in talks to acquire Finish Line Inc FINL.
Shares of the footwear retailer moved up 12 percent in 10 minutes on Thursday afternoon.
According to the New York Post, British-based Sports Direct, who owns iconic brands Everlast and Kangol, is in direct negotiations to buy Finish Line.
An acquisition could be announced in the coming weeks, according to a source close to the situation.
Sports Direct already owns an 8 percent stake in Finish Line.
Finish line experienced a roller coaster trading day, with shares now up nearly 4 percent following the news. Competitor Foot Locker, Inc. FL also saw a sharp spike in share price after the report was released.
A Susquehanna analyst is predicting a $13.30 share takeover price, but if the deal does not go through, expects shares to drop to $8 levels.
Investors appear to be down on footwear retailers as its biggest retail partners continue to focus their efforts on direct-to-consumer channels. Nike Inc NKE's second earnings call focused heavily on the company’s direct-to-consumer offensive strategy.
Finish Line is also boosting its e-commerce efforts, particularly in mobile, where over 70 percent of its digitial traffic has switched over. Finish Line CEO Sam Sato says the company will invest $15 million to upgrade its speed in mobile.
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