Blockbuster withdraws Circuit City buyout offer
Blockbuster Inc. (NYSE:BBI) shares rose 12% Wednesday after announcing it would abandon its efforts to buy out Circuit City Stores Inc. (NYSE:CC). Shares of Circuit City dropped 13% Wednesday on the news. Blockbuster said in a release late Tuesday it would end its unsolicited bid of $6 to $8 per share, totaling more than $1 billion; the offer was announced in April of this year. Dallas-based Blockbuster said current market conditions were not conducive to the purchase of the Richmond, Va.-based electronics chain.
Blockbuster shares rose to $2.83 apiece, up $0.32 from Tuesday’s close, while Circuit City’s shares sunk to $2.21, down $0.34.
For detailed price information and recent news stories on Blockbuster Inc., click BBI. For information on Circuit City Stores Inc., click CC.
