Company News: Genesco spurns $1.2 billion bid from Foot Locker

Genesco Inc. rejected Foot Locker Inc.’s $1.2 billion takeover offer on Monday, but Foot Locker isn’t ruling out the possibility of raising its bid for its footwear and accessories rival.

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.

After consulting with financial adviser Goldman, Sachs & Co. and legal adviser Bass, Berry & Sims PLC, 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.

A Foot Locker spokesman wouldn’t comment on Genesco’s decision.

“Virgin Atlantic and Air Canada delivered double victories to Boeing Co. on Tuesday, choosing the company’s 787 Dreamliner over the competing Airbus A350 model.

Meanwhile, Boeing said it was partnering with London-based Virgin Atlantic to develop a new biofuel for commercial jets as part of an effort to reduce carbon emissions.

Virgin Atlantic’s 15-plane order is worth $2.8 billion at list prices and is the largest European order to date for the aircraft, which is due to enter service in 2008.

Virgin Atlantic also took options for eight 787s and purchase rights for 20 more of the aircraft, which Boeing is touting for its increased fuel efficiency — a deal potentially worth $8 billion. The planes will be added to its fleet in 2011.

“Bank associations in Massachusetts, Connecticut and Maine said Tuesday they will sue TJX Cos. over a data theft that exposed at least 45 million credit and debit cards to potential fraud.

Banks have been saddled with costs to replace cards and cover fraudulent charges tied to the theft from TJX, the owner of nearly 2,500 discount stores including T.J. Maxx and Marshalls. Since it disclosed the data theft three months ago, Framingham-based TJX has been hit with several lawsuits filed in the U.S. and Canada by consumers, financial institutions and investors.

The Massachusetts Bankers Association said the Connecticut Bankers Association, Maine Association of Community Banks and at least three individuals banks are joining in a lawsuit to be filed Wednesday in U.S. District Court in Boston. The associations represent nearly 300 banks.