Circuit City Bid InvestorsJune 25th, 2008 - 4:42 pm ICT by Amrit Rashmisrisethi
Retailer Circuit City Stores Inc is receiving buyout interest from several strategic and financial bidders, including movie-rental company.
“I am very confident that we will be seeing who the buyer of Circuit City is in the next three or four weeks and what the price is,” Mark Wattles told Reuters by phone after Circuit City’s annual meeting in Richmond, Virginia. Wattles Capital Management owns about 6.5 percent of Circuit City stock.
Wattles, the founder of Hollywood Entertainment Corp, Circuit City opened its financial books to Blockbuster. Circuit City shares closed down 2 cents at $3.35 on the New York Stock Exchange. Blockbuster , in April it offered around $1.3 billion, to for Circuit City.
Circuit City opened its financial books to Blockbuster last month and said it was exploring strategic options.
Blockbuster reached 4 percent, at $2.62 after rising for about 13 percent as one analyst cited investor speculation ,the effort to buy Circuit City was falling apart.
Blockbuster was “just one of the players,” said Wattles, who called on Circuit City.
A Blockbuster spokesman said his company was still conducting due diligence and would proceed with a transaction “if it makes sense financially and strategically and also creates significant value for our shareholders.”