Circuit City Stock Jumps on Friday News
A major day of news for Circuit City on Friday- during the which the struggling CE retailers agreed to open its books to Blockbuster to pave the way for a sale, and also settled with dissident investor Mark J. Wattles- caused the company’s stock to rise 28 cents to trade at $5.07 a share by the end of the day, after reaching as high as $5.40 earlier in the day.
In early trading Monday, the company’s stock had reached $5.17 per share.
In a pair of announcements Friday, Circuit City said that it had agreed to allow Blockbuster, Inc. and its top investor, Carl Icahn, to see their books, after declining to do so for several weeks. The company also said it had reached a compromise with Wattles, who had been threatening to topple Circuit City’s leadership at the company’s annual meeting in June. Under terms of the deal, Wattles has agreed to abandon the proxy fight, while two members of Wattles’ slate will join the company’s board of directors.