Blockbuster bids for Circuit City
DALLAS — Movie rental chain operator Blockbuster is taking an unsolicited $1 billion-plus bid for Circuit City Stores directly to shareholders, saying the consumer electronics chain is dragging its feet on previous offers.
Dallas-based Blockbuster Inc. said early Monday said it has been in talks with Richmond, Va.-based Circuit City Stores Inc. for months regarding a potential acquisition, and on Feb. 17th sent a letter to Circuit City Chairman and Chief Executive Philip Schoonover offering at least $6 per share in cash for the company.
Blockbuster says that, to date, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive takeover proposal.
