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Latest Business News

It May Take Buyout to Help Circuit City

Wednesday, May 23, 2007 11:54:35 PM

CHARLOTTE, N.C. (AP) - Circuit City's recent profit warning and concerns about competition have pulled the plug on the consumer electronics retailer's shares.

Trading around their lowest level in more than two years, shares are below the $17 buyout offer Circuit City Stores Inc. rejected from a Boston hedge fund in 2005. At $15.77 Wednesday, a share of Circuit City is cheaper than a DVD copy of the recent "Borat" movie the retailer sells on its Internet site.

But the near-term outlook is so cloudy that some company watchers believe it will take either a buyout offer, a major management change or both to spark shares in the months ahead.


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