Fort Worth, Texas
– 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.
