Circuit City Responds to Blockbuster Bid
Circuit City on Monday formally received the bid from Blockbuster to take it over, filing a document with the SEC in which it vowed to consider the offer, but at the same time raised big questions about it.
Also in the filing, the company questioned whether Blockbuster has the “structure, sources and uses of funds and consents required” for such a takeover. However, Circuit City acknowledged that it had had discussions in the past about such a merger, and that the sides had previously exchanged financial information.
Circuit City concluded by stating that it wishes to continue discussing the proposal, but refused to provide “additional detailed due diligence information” until its questions were answered.