Foot Locker, the largest athletic shoes and apparel retailer, has offered to buy rival Genesco for $1.2 billion.

Genesco sells its gear through a number of retail brands including Lids, Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station and Hatworld.

The deal, which represents a 26% premium to its average share price in the year period preceding the proposal date, would boost the company's presence in the specialty footwear arena, the company says. Genesco says its board intends to consider the proposal.

Rumors surfaced months before the proposal was announced, that Foot Locker was preparing a takeover bid for Genesco for its strong hat business. Genesco was expected to reject the offer. The top athletic gear retailer itself had been the target of buyout rumors as well.

Foot Locker Inc., the largest retailer of athletic shoes and apparel, said on Friday it offered to buy rival Genesco Inc. for $1.2 billion, in a deal that will bolster its position in the specialty footwear and hat market.

Genesco sells its gear through a number of retail brands including Lids, Journeys, Journeys Kidz, Shi by Journeys, Johnston & Murphy, Underground Station and Hatworld. Its shares shot up nearly 13 percent on the news and Foot Locker shares also rose.

(Continue reading this story on Reuters)

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