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SAN DIEGO – The proposed sale of US-based exclusive sports shoe supplier, The Finish Line, to UK-sportswear retailer, JD sports, is to be the subject of an investigation by shareholder rights law firm, Johnson & Fistel, LLP. The lawyers will look at whether board members of The Finish Line breached their fiduciary duties in connection with the proposed sale by not getting the best possible share price and also whether they adequately pursued alternatives.

JD Sports has agreed a US$558m (£400m) deal to buy The Finish Line. Under the terms of the transaction, Finish Line shareholders will receive US$13.50 in cash, however, a note from Johnson & Fistel claims one Wall Street analyst has a US$17.00 price target on the stock.

The Finish Line, Inc., together with its subsidiaries, operates as a retailer of athletic shoes, apparel and accessories for men, women and kids in the US, and its purchase represents a major strategic move by JD Sports into the vast US market. The business sells athletic shoes, as well as an assortment of apparel and accessories of Nike, Brand Jordan, Adidas, Under Armour, Puma and other brands.

Said a Johnson & Fistel statement: “The investigation concerns whether Finish Line’s board failed to satisfy their duties to the Company’s shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for the Company’s shares of common stock.

“Johnson Fistel is investigating whether the proposed deal represents adequate consideration, especially given that one Wall Street analyst has a $17.00 price target on the stock. The 52-week high for Finish Line was $16.38. Additionally, Finish line has over $77million in cash and no long-term debt.”

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