UPDATE 2-Mexican tycoon Salinas sets eyes on Circuit City

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By Cyntia Barrera Diaz

MEXICO CITY, Nov 18 (Reuters) - Mexican retail and media tycoon Ricardo Salinas Pliego owns 28 percent of Circuit City and could buy more of the troubled U.S. electronics chain, a Salinas spokesman said on Tuesday.

"Up to date, Mr. Salinas has purchased just under 28 percent (of Circuit City)," Luis Nino de Rivera, a spokesman for Salinas' business group, told Reuters.

Asked whether Salinas could buy more Circuit City Stores Inc (CCTYQ.PK) stock he said: "It is possible, of course."

Nino de Rivera said the acquisition was a personal investment by Salinas, who owns the TV Azteca (TVAZTCACPO.MX) broadcaster and retailer Elektra (ELEKTRA.MX), and Salinas was evaluating what to do with the Circuit City stake.

Circuit City filed for Chapter 11 bankruptcy protection last week, falling victim to tighter credit terms from vendors and decreased consumer spending. It hopes to emerge from bankruptcy in the first half of 2009.

Salinas, one of Mexico's richest men, acquired the stock in the open market before and after Circuit City went bankrupt and he has had no direct talks with the U.S. chain's management, Nino de Rivera said.

Since he now owns more than 5 percent of a U.S. company, Salinas will have to file subsequent reports to the U.S. Securities and Exchange Commission regarding any additional Circuit City stock purchases, Nino de Rivera added.

But he has no obligation to file similar reports to Mexican regulators.

Salinas, the heir to a 100-year old family retail business, is known for aggressive business tactics that cater to lower- income markets with no-frills banking services or cheap electronics.

His Elektra chain operates in Mexico, Guatemala, Honduras, Panama, Peru, Brazil and Argentina, while TV Azteca, Mexico's No. 2 broadcaster, has tapped the U.S. and Guatemalan markets.

Salinas rise has been marred in past years by disputes with business partners and he delisted three of his companies from Wall Street after U.S. securities watchdogs tightened regulation and monitoring of public companies.

In 2006, Salinas also settled a lawsuit with the Securities and Exchange Commission in the United States, paying a fine without admitting or denying allegations of fraud as part of a scheme to conceal his participation in a deal that made him and a close aide a profit of over $100 million each.

Mexico's Carlos Slim, considered one of the richest men in the world, made a bid for Circuit City in 2003 that was rejected. Last year, he dropped his holding in now defunct CompUSA. (Editing by Andre Grenon)