Tags: RadioShack | Surges | Merger | Speculation

RadioShack Surges on Merger Speculation

Friday, 26 Mar 2010 01:15 PM

RadioShack Corp. is exploring alternatives including a share buyback or a possible sale of the company that could net more than $3 billion, the New York Post said, citing sources close to the situation.

Shares of the U.S. electronics retailer rose as much as 10 percent to its highest level since September 2007.

Investment bankers have already begun pitching their private equity clients about a leveraged buyout of RadioShack, informing them of the retailer's willingness to sell, the newspaper said.

Another option for RadioShack would be a merger with bigger rival Best Buy Co. Inc., the Post said.

Both RadioShack and Best Buy said in separate emails that their policy was not to comment on market rumors.

It is still early in the process and any sale efforts would not begin for weeks or even months, a source told the paper.

RadioShack shares have risen in the past on takeover speculation, but some analysts were skeptical about its chances of being bought because of weakness in the chain's accessory business.

RadioShack shares have nearly tripled over the last year as it repositioned itself as a hub for mobile phones and related services. Sales of mobile phones and related equipment were strong in the fourth quarter, but demand was weak for TV converter boxes, video game systems and batteries.

RadioShack shares were up $1.84 at $23.64 after touching an intraday high of $23.91 earlier in the session. Best Buy shares rose 1.6 percent, or 67 cents, to $43.33.

© 2017 Thomson/Reuters. All rights reserved.

   
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RadioShack Corp. is exploring alternatives including a share buyback or a possible sale of the company that could net more than $3 billion, the New York Post said, citing sources close to the situation. Shares of the U.S. electronics retailer rose as much as 10 percent to...
RadioShack,Surges,Merger,Speculation
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2010-15-26
Friday, 26 Mar 2010 01:15 PM
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