Circuit City open to Blockbuster bid
May 11, 2008
Circuit City is opening its books to Blockbuster after several months of playing hard to get.
The struggling electronics chain said Friday that it has retained Goldman Sachs to explore Blockbuster’s $1 billion takeover bid, among other shareholder options. Blockbuster offered $6 to $8 per share on Feb. 17, but Circuit City refused to take the bid seriously at first, casting doubt on Blockbuster’s ability to pony up the all-cash offer (Daily Variety, April 15).
Circuit’s City’s board changed its mind after Blockbuster put shareholder Carl Icahn’s offer to cover the cost himself in writing. Icahn is Blockbuster’s largest shareholder and a director at the company.
Circuit City said it will now co-operate with Blockbuster’s request with additional information as part of its due diligence. Philip Schoonover, chair, prexy and CEO of the chain, said its board remains confident about the company’s ability “to successfully implement its turnaround plan,” but decided to explore all possible alternatives.
- From Variety
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