Hedge Fund Pushes Circuit City-Blockbuster Tie-Up

Apr 29 2008 | 3:36pm ET

HBK Investments, the largest shareholder of Circuit City Stores, is pushing the electronics retailer to accept an unsolicited bid from Blockbuster Inc. The Dallas-based hedge fund also indicated it might help finance the deal.

“We are very optimistic about the future prospects of a combined company,” HBK wrote to Circuit City CEO Philip Schoonover. It called on the Richmond, Va.-based electronics retailer, in which it owns a 9.1% stake, to “immediately” provide information to Blockbuster, and threatened to file a lawsuit if the board refuses to do so.

“We see little downside to Circuit City’s business by allowing Blockbuster to conduct full due diligence,” HBK, which also owns an 8.5% stake in the video rental chain, said. So positive is the firm that it “might also be prepared to provide financing” for the acquisition.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...