Venator, Sports Authority Deal Off
Venator and The Sports Authority scrapped their planned merger late Thursday after falling share prices deflated the value of the deal.
Venator Group (Z), formerly Woolworth's, agreed in May to buy the Fort Lauderdale-based chain (TSA) for stock then worth about $579 million. But both companies' share prices have since fallen, putting the value of the deal at about $218 million.
Shares of Venator rose 5/16 to 8 5/16 on Friday afternoon; The Sports Authority gained 3/16 to 5 3/8.
Gart Sports (GRTS), which made a rival bid for The Sports Authority in July, is reportedly weighing its options."Strategically we continue to believe that the acquisition offers significant synergies that would enhance the growth opportunities of both companies," Roger N. Farah, Venator Group's Chairman and CEO, said in a statement.
"However, given current market conditions, we have determined that to pursue the transaction at this time would not serve in the best interest of our shareholders."
"We are fully prepared and committed to operate our business on a stand-alone basis in order to maximize long-term value for our shareholders," said Sports Authority CEO Jack Smith.
Written By Steve Gelsi