RICHMOND, Va. — An activist shareholder on Wednesday urged Circuit City Stores Inc. to allow Blockbuster Inc. to examine its finances and start good-faith negotiations on the movie-rental chain’s bid for the struggling electronics retailer.
Wattles Capital Management, which owns about 6.5 percent of Circuit City’s stock, said in a letter to Circuit City that the company should provide access to Blockbuster and discuss its buyout proposal along with other possible bids. Wattles Capital is headed by Mark Wattles of Thornton.
Blockbuster announced a takeover bid last week of just over $1 billion for Circuit City with dreams of creating a huge chain that would sell electronic gadgets and rent movies and games.
The Dallas-based company said it approached Circuit City in December and sent a letter in February to chief executive Philip Schoonov er, offering $6 to $8 per share, which would put Circuit City’s value at $1.01 billion to $1.35 billion.
Circuit City, the nation’s second-biggest consumer electronics chain, has said it doubts Blockbuster could finance the deal and has resisted opening its books.
