Blockbuster drops Circuit City bid
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Blockbuster Inc., the world’s largest movie-rental chain, walked away from an offer of as much as $1.35 billion for Circuit City Stores Inc. after taking a closer look at the finances of the money-losing electronics retailer.
“Based on market conditions and the completion of our initial due diligence process, we have determined that it is not in the best interest of Blockbuster’s shareholders to proceed,” said Jim Keyes, Blockbuster’s chairman.
In April, Blockbuster made an unsolicited bid for Circuit City that offered shareholders a nearly 50% premium. Last week, investor Mark Wattles, whose three Circuit City board nominees were voted in by shareholders, said the retailer had drawn buyout interest from at least three companies.
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