Blockbuster Bids $1B for Circuit City
Dallas Blockbuster Inc. said Monday it will present an unsolicited $1 billion-plus bid for Circuit City Stores Inc. directly to shareholders of the consumer-electronics chain, saying the retailer has not responded to repeated offers.
Blockbuster CEO James Keyes said a deal would create a chain that could sell portable devices and entertainment for them, much like Apple Inc.’s stores. Keyes said the offer is supported by Blockbuster board member Carl Icahn, who could be a source of financing for the deal, according to the Associated Press.
Circuit City said it has exchanged information with Blockbuster but wasn’t convinced how the movie-rental chain would finance its offer. Circuit City advised its shareholders to take no action until the company board reviews the bid.
Blockbuster said it has been in talks with Circuit City for months regarding an acquisition, and sent a letter on Feb. 17 to Circuit City chairman and CEO Philip Schoonover offering $6 to $8 per share in cash for the company.
Based on Circuit City’s 168.4 million shares outstanding at Dec. 31, 2007, the deal values Circuit City at $1.01 billion to $1.35 billion.
Tuesday Morning promotes Bowman to cfo
DALLAS Tuesday Morning has promoted Stephanie Bowman to the position of evp and cfo. Bowman was previously serving as vp of finance for Tuesday Morning, prior to that she served as vp of finance for Summit Global Partners.
“Stephanie has an extensive knowledge of financial management and because of her current position with Tuesday Morning, understands the company’s systems, personnel, and culture. She is positioned to hit the ground running,” stated Michael Marchetti, evp, coo and acting cfo.
Tuesday Morning reported that net sales for the third quarter ended March 31 were $178.4 million compared to $189.2 million for the quarter ended March 31, a decrease of 5.7%. Comparable-store sales for the quarter ended March 31 decreased by 8.2% comprised of a 6.6% decrease in traffic and a 1.6% decrease in ticket.
Based on the third quarter sales results, the company currently expects diluted earnings per share for the third quarter to be in the range of (10 cents) to (12 cents).
Best Buy names Mikan to to board
MINNEAPOLIS Best Buy has announced the appointment of Mike Mikan to its board of directors. Mikan currently serves as evp and cfo of UnitedHealth Group.
“We are delighted to welcome Mike Mikan to Best Buy’s board of directors,” said Richard Schulze, Best Buy’s founder and chairman of the board. “With his deep financial experience, Mike will be a valuable addition to our board. We think his guidance and judgment will be important as we continue to grow Best Buy into the future.”
Mikan was appointed evp and cfo of UnitedHealth Group, in November 2006. Mikan previously served as cfo for UnitedHealthcare and chief financial officer for Specialized Care Services (now OptumHealth).