Circuit City rejects takeover bid

[DevilDog#1]

Didn't know where to put this one, since it's not really spam.

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Reuters
Published on ZDNet News: March 8, 2005, 6:11 AM PT

Circuit City, the No. 2 U.S. electronics retailer, said its board has turned down a takeover offer from a private investment firm.

The company, which has been losing market share to top-ranked rival Best Buy, said Monday that the $17-per-share offer from Highfields Capital Management "or other sale alternatives would not be in the best interests of the company's shareholders."

Boston-based Highfields, which owns about 6.8 percent of Circuit City's outstanding shares, said it was disappointed and remains prepared to consummate a deal, but will continue to work with management to maximize the company's value.

Richmond, Va.-based Circuit City said its board believes the company can best maximize shareholder value by continuing to aggressively implement initiatives currently under way and planned for the future.

"Less than two years ago, the board received and rejected an offer of $8 per share for the company. Since that time, the company has made significant progress in positioning itself strategically, operationally and financially for long-term strength and success," W. Alan McCollough, Circuit City's chief executive, said in a statement.

[Dr. Bullet]

I wish Circuit City would just die...awful prices, awful service. If anything, they're just allowing their competitors to raise their prices.

[Hellfighter]

i can't say that i got some of my stereo system for half price deals from them, if it a year old they sell it really cheap to get it out and get new models in.

[VooDoo-]

i never go to electronic stores any more anyways....if i buy something .. its usally online ...

and best buy can just slob my nob .. im never going there again