Foot Locker bid for Docker's licensee rejected

Footwear specialist Genesco rejected Foot Locker Inc.'s $1.2 billion takeover offer Monday, but Foot Locker isn't ruling out the possibility of raising its bid for its footwear and accessories rival. Genesco operates over 2000 stores in America and Canada, and further wholesales the Dockers brand.

Foot Locker had proposed paying $46 a share for Genesco in a deal that would have united its Foot Locker, Footaction, Lady Foot Locker, Kids Foot Locker, Champs Sports and Footquarters chains with Genesco's Journeys, Lids, Hat World and Underground Station brands.

Nashville-based Genesco said in a letter to Foot Locker that the offer undervalued the company and that previous discussions about a buyout had mentioned prices between $48 and $50 per share. Foot Locker, based in New York, operates about 4,000 stores in 20 countries in North America, Europe and Australia.