Circuit City Shares Fall Ahead of Meeting
With Circuit City’s annual shareholder meeting scheduled to kick off today, shares in the company’s stock fell 18 percent Monday, a drop that Reuters attributed to “market concerns” over the company’s ability to turn itself around.
One analyst quoted by the news service said that the chain’s weak quarter could lead to a smaller takeover offer by Blockbuster, Inc., than its original proposal.
Meanwhile, another analyst was quoted by the Dallas Morning News Friday as placing the likelihood of a Blockbuster/Circuit City merger at 5 percent. That analyst, Arvind Bhatia of Dallas-based Sterne, Agee & Leach, said he expected Blockbuster to either lower their offer or walk away completely.