April 14, 2008
(AP) Movie rental chain operator Blockbuster is taking an unsolicited one billion-dollar-plus bid for Circuit City Stores directly to shareholders, saying the consumer electronics chain is dragging its feet on previous offers.
Blockbuster said today it has been in talks with Richmond, Virginia-based Circuit City for months regarding a potential acquisition, but says that Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive takeover proposal.
Circuit City said it has exchanged information with Blockbuster but wasn't convinced how the movie-rental chain would finance its offer. Circuit City advised its shareholders to take no action until its board reviews the bid.
Blockbuster Chief Executive James Keyes said a deal would create a chain that could sell portable devices and entertainment for them, much like Apple's stores.
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