Venator Calls Off Sports Authority Deal

Retailer Venator Group Inc. said it is terminating its merger agreement with leading sporting goods retailer Sports Authority Inc. because of market conditions. New York-based Venator had reiterated its intention to buy Sports Authority on Aug. 20 despite disappointing earnings and a stock price below the $20.50-per-share “walkaway” price specified in the deal. Under the walkaway provision, shareholders could opt out of the deal if Venator’s stock price was less than $20.50, on average, for a 20-day period within the 23 days before a Sports Authority shareholders meeting. Fort Lauderdale, Fla.-based Venator slipped further beneath the walkaway mark on Aug. 20, when it reported a net loss of $13 million, or 9 cents per share. Shares in Venator fell 25 cents to close at $8.63 on the New York Stock Exchange. The company made the announcement after the close of trading.