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RadioShack Buyout Rumors Re-Ignite

7/13/2010 04:45:00 PM

Shares of RadioShack were up as much as 4 percent today amid renewed speculation that the iconic electronics chain is being acquired.

Today’s rumors swirled around reports that equity investment firm Blackstone Group has entered into a definitive agreement to acquire the company.

Blackstone was cited last month by the New York Post as one of several large private-equity firms that was bidding for the business in an auction estimated to net more than $3 billion.

The sales process is supposedly led by JPMorgan Chase, and Best Buy was also mentioned as one of the interested parties.

Some analysts consider RadioShack an attractive asset thanks to aggressive cost-cutting measures by CEO Julian Day, solid cash flow, and its strong position in the growing wireless market. Its more than 4,000 small-format stores would also play into Best Buy’s mobile strategy of rolling out freestanding, mall-based wireless shops.

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