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COMPUSA trying to buy CIRCUIT CITY!!!

Old 06-26-03, 01:20 PM
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COMPUSA trying to buy CIRCUIT CITY!!!

Oh god this would suck ass:

WASHINGTON - Circuit City Stores Inc. Thursday said it rejected an $8-a-share buyout offer from the owner of CompUSA, who already holds a 9.2 percent stake in the electronics retailer, according to a regulatory filing.

The closing price of Circuit City's common stock the last full trading day before the talks, June 13, was $6.75 a share, the filing said.

Shares of Circuit City, based in Richmond, Va., traded Thursday afternoon at $8.64, up 66 cents, or 8 percent, on the New York Stock Market.

CompUSA's owner is Carlos Slim Helu, one of Mexico's wealthiest businessmen. He said in the filing he intends to continue to evaluate options for the investment in Circuit City.

A representative for Slim contacted Circuit City Chief Executive Alan McCollough June 16 to discuss a possible transaction, according to the filing with the Securities and Exchange Commission (news - web sites).

McCollough notified the shareholder June 18 that the company's board wasn't interested in discussing any proposals, the filing said.

Helu, whose stake in Circuit City is held through affiliated family businesses, made a preliminary proposal to acquire all the company's outstanding shares that he doesn't already hold for $8 a share in cash.

The payment would be made through a pre-closing dividend, after which one of Helu's affiliates would acquire all outstanding common shares.

As an alternative, Helu indicated an interest in discussing a business combination in which Circuit City would merge with businesses owned by Slim and shareholders would get stock in the combined company and cash valued at $8 per Circuit City share.

Helu reported in the filing that $155.1 million was spent to buy the 19.05 million Circuit City shares that he and his affiliates own.
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Old 06-26-03, 03:13 PM
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I wonder if they could just pricematch at Best Buy.
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Old 06-26-03, 03:45 PM
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Good that they didn't succeed in buying off CC. Otherwise we would end up with CrapCity in addition to CrapUSA.
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Old 06-26-03, 04:43 PM
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Hmm, I don't like shopping at either Circuit City or CompUSA. Sounds like a good merger!

But on a serious note, all the extra competition is a good thing for consumers. I hope this doesn't happen.
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Old 06-26-03, 11:10 PM
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I didn't know CUSA already had almost 10% of CC. Hopefully we'll stay independant. CUSA reminds me of a warehouse.
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Old 07-01-03, 06:01 PM
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Hmmm. I have a long standing boycott with CompUSA so I hope they don't buy CC. I'll have to stop shopping there as well.
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