Circuit City opens books
ATLANTA–Circuit City Stores Inc. reversed course yesterday and put itself up for sale. The electronics chain said it would open its books to suitor Blockbuster Inc. and the movie-rental company’s largest shareholder, billionaire investor Carl Icahn.
The chain also said Goldman Sachs Group is helping it explore strategic options, and announced an agreement with investor Mark Wattles over board candidates that effectively ends a proxy fight ahead of its June annual meeting.
Last month, Blockbuster disclosed that in February it had offered to acquire Circuit City for $6 (U.S.) a share to $8 a share, or up to $1.3 billion. Circuit City responded that while it was open to pursuing talks, it was unwilling to let Blockbuster see its books, citing concerns about financing.
Yesterday, Circuit City said Blockbuster had provided additional information that included a letter from Icahn stating that, subject to being satisfied with his due diligence review, Icahn and affiliates would "stand ready" to purchase Circuit City if Blockbuster were unable to arrange financing payday advance. Circuit City said the decision to open its books "should not be taken as an indication" it has completed its review of the Blockbuster bid.
Reuters News Agency
Filed under: technology by Pascal