Circuit City Stores, Inc. (NYSE: CC) has finally capitulated. There are two separate announcements this morning, but in reality it is all part of the same issue. This will allow the company to deal with the activist pressure, and may ultimately lead to the company either being run by a better team or become a subsidiary of another company.
The company just issued a release that it has reached an agreement with Wattles Capital Management.
Circuit City will choose three board members proposed by Wattles, and now Wattles has agreed not to solicit proxies related to the 2008 annual meeting. In addition, two of Circuit City’s current board members will step down by the annual meeting of 2009.
Circuit City has also announced that it has hired Goldman Sachs (NYSE: GS) in an effort to explore strategic alternatives to enhance shareholder value. The company even agreed to allow Blockbuster Inc. (NYSE: BBI) and Carl Icahn to conduct due diligence related to its proposal to acquire the company.
Shares of Circuit City are up 11% at $5.35 in pre-market trading, and its 52-week trading range is $3.44 to $17.97. Shareholders must be thinking, "It’s about freakin’ time."
You can join our open email distribution list to keep up with mergers, IPO’s, spin-offs, and other specialty financings.
Jon C. Ogg
May 9, 2008
Jon Ogg is also a producer and editor of the "10 Stocks Under $10" weekly newsletter; he does not own securities in the companies he covers.
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.