Circuit City readies for proposed buyout

RICHMOND, Va. (AP) - Circuit City Stores Inc. on Friday gave in to pressure from activist shareholders, essentially putting itself up for sale and agreeing to nominate dissident directors to its board.

The electronics retailer announced it would open its books to Blockbuster Inc. and Blockbuster’s largest shareholder, Carl Icahn. It did so after Icahn defused concerns about whether Blockbuster could finance the deal by saying he was prepared to buy the company if all else fails.

Circuit City said Icahn’s letter answered some questions related to the potential transaction and that it would allow the video-rental chain to conduct due diligence in its takeover bid of just more than $1 billion with plans for creating a huge chain that would sell electronic gadgets and rent movies and games.

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