Finance / United States
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Reverse Takeover Bid Is A Blockbuster
April 2008 | M&A AnalysisSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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What do you get when you combine a fast-fading video rental chain and a electronics retailer that is struggling to beat the competition? A profitable platform for selling and renting multimedia that is greater than the sum of its parts. At least that's the logic behind the reverse takeover bid on April 13 by Blockbuster Video for Circuit City, which values the latter at US$6-8/share, or around US$1bn. That would be a 54% premium over current share prices, a fairly audacious bid considering that Blockbuster's market cap is hundreds of millions of dollars below Circuit