Circuit City opens its books to Blockbuster

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The Independent Online

Circuit City, the US electronic retailer which has received a takeover bid from the DVD rental business Blockbuster, signalled it was exploring a sale of the company, appointing Goldman Sachs to advise on its options and agreeing to give board seats to a dissident investor.

The company also said it would allow Blockbuster – which surprised Wall Street with a $1bn-plus bid for Circuit City last month – to conduct due diligence. Philip Schoonover, Circuit City chief executive, had previously refused to give Blockbuster access to the books because he did not believe it could afford a bid, but Carl Icahn, the billionaire who holds a stake in Blockbuster, promised he could provide financing.