Circuit City will allow Blockbuster and its largest shareholder Carl Icahn access to the retailer’s financial records allowing the latter to complete due diligence for a possible acquisition.
“Our decision to allow Blockbuster and Carl Ichan to conduct due diligence should not be taken as an indication that the board has completed its review of the Blockbuster proposal,” said Philip J. Schoonover, chairman/president/CEO of Circuit City.
The retailer also announced that it has retained Goldman Sachs & Co. to assist the company in exploring strategic alternatives to enhanced shareholder value.
Blockbuster officials said they are hopeful that the due diligence process will reinforce the strategic and financial rationale behind the deal. “We continued to believe this combination would create significant cost and operating synergies,” the company said.