SAN FRANCISCO (Reuters) - Nike said Tuesday it will likely take a charge in the fourth quarter after an arbitrator ruled that its Converse unit should pay $52.5 million in damages to a former Latin American licensee, Alon International.

The athletic shoe maker did not disclose details of the ruling, citing confidentiality provisions in the arbitration rules. It added that the actual amount of the charge will be decided by the arbitrator's determination of legal fees and Nike's own assessment of the likely outcome of future proceedings.

In a statement, Nike (Research) General Counsel Jim Carter said it would challenge the award and the amount of damages.

Amounts Nike previously paid Alon will be deducted from the award, the company said.

Nike plans to report fourth-quarter earnings in June. The company's shares were down 22 cents at $80.45 in after-hours trade on the Inet electronic brokerage after closing at $80.67 on the New York Stock Exchange.

________________________

Coke calls lead-paint lawsuit 'outlandish'. Read the full story here.