Blockbuster to reconsider Circuit City plan later?!?!? (BBI, rated SELL)

July 3, 2008

Blockbuster Inc, which abandoned its offer to buy Circuit City Stores Inc this week, may try to acquire the electronics retailer later, the New York Post said Thursday citing insiders.

One source told the paper that Blockbuster "verified the long-term benefits of a deal," and added that a there was a "real opportunity" to cut costs in combining the two chains’ operations.

"Management didn’t really put its case in front of shareholders yet," the source told the paper.

The video-rental company in April disclosed that it had offered to buy Circuit City in February for $6 to $8 a share, or up to $1.3 billion.

However, Blockbuster Chief Executive Jim Keyes had cited "market conditions" as a reason for withdrawing the offer and said the deal was not in the best interests of its shareholders.

Blockbuster to reconsider Circuit City plan later?!?!? (BBI, rated SELL)

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