Icahn, Wattles weigh in behind Blockbuster
Blockbuster shareholder Carl Icahn has indicated that he will provide any financing required for Blockbuster to purchase electronics retailer Circuit City.
And Circuit City dissident shareholder Steve Wattles, who is currently waging a proxy fight vs. Circuit City’s management, has told Reuters that any bid above $6/share (representing a 54%+ premium) “looks attractive”.
Meanwhile, Blockbuster’s shares are down 16% in market trading. King Carl must see something that the market doesn’t.
Jim Kersetter at NewsBlog adds the following insight:
“Apple has around 200 retail stores and can meticulously control what is sold in them and how they are run… By comparison, the combined Blockbuster and Circuit City would have 9,300 retail stores, with 5,500 in the United States (though I have to think more than a few of them would be shut down). Quality control? They’re going to have to bring in a logistics expert from the military for that one.”
Click here to read the full piece.
For a look at the Reuters blurb, click here.
