Circuit City Turns Down Bid

Richmond, Va.Richmond, Va., The directors of Circuit City Stores Inc. voted to refuse last month’s $3.25 billion acquisition bid by Highfields Capital Management LP, a Boston-based hedge fund and Circuit City shareholder.

The board said it had unanimously determined that further exploring the transaction proposed by Highfields or other sale alternatives would not be in the best interests of the company’s shareholders, and that the company can best maximize shareholder value by continuing to aggressively implement the strategic, operational and financial initiatives currently under way and contemplated for the future.

Highfields is one of Circuit City’s largest shareholders, with about 6.8% of the stock.