Circuit City Gets $3.25 Billion Takeover Offer

NEW YORK (Reuters)—Circuit City Stores Inc., the No. 2 U.S. consumer electronics chain, on Tuesday said it had received an unsolicited takeover offer of $17 a share, or about $3.25 billion.

The proposal from Highfields Capital Management LP represents a 19.5-percent premium over Circuit City's closing share price of $14.23 on Monday on the New York Stock Exchange.

Its announcement sent Circuit City shares soaring 19.5 percent to $17 on the Inet electronic brokerage system before the bell.

Richmond, Virginia-based Circuit City, which has been grappling with increasing competition from industry leader Best Buy Co. Inc., said it would carefully evaluate the offer.

Read the full article: Circuit City Offered $3.25 Billion.

Copyright © 2005 Ziff Davis Media Inc. All Rights Reserved. Originally appearing in ExtremeTech.