Circuit City under seige: second proxy fight arises with Blockbuster bid
Circuit City, already facing a proxy fight with dissident investor Wattles Capital Management (see prior posts here and here), has received a cash buyout offer from Blockbuster Inc.
According to The WSJ Online, Circuit City’s board received the offer in February and summarily rejected it, doubting Blockbuster’s ability to secure the required financing.
Frustrated with Circuit City’s lack of action (sound familiar?), Blockbuster has gone public with its offer.
Could we have two competing proxy fights at the same company? Wattles’ earlier efforts appeared more about controlling the electronics retailer, akin to Wattles’ experience with its portfolio company Ultimate Electronic, and may lead Wattles to compete with both Circuit City’s board and Blockbuster’s offer.
Click here to read Blockbuster’s offer letter, and click here to read Circuity City’s response to the public announcement.
To read more at The WSJ Online, click here.
