Market Overview

Finish Line Skyrockets On Takeover Talks

Finish Line Skyrockets On Takeover Talks

Footwear retailers shares are skyrocketing on a new report that a British retailer may be in talks to acquire Finish Line Inc (NYSE: 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. (NYSE: 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 (NYSE: 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.

Related Links: 

Finish Line Downgraded Ahead Of Earnings
Are Foot Locker And Finish Line's Problems All Nike's Fault?

Posted-In: finish line sports directNews Movers Media Best of Benzinga


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