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UPDATE 1-Circuit City investor may seek control-filing
November 20, 2008 / 4:40 PM / 9 years ago

UPDATE 1-Circuit City investor may seek control-filing

(Adds shares owned, comment from filing)

ATLANTA, Nov 20 (Reuters) - Mexican retail and media mogul Ricardo Salinas Pliego confirmed that he owns a stake in Circuit City Stores Inc CCTYQ.PK on Thursday and indicated he may seek control of the bankrupt electronics retailer.

In a U.S. Securities and Exchange Commission filing, Salinas disclosed ownership of nearly 47.2 million Circuit City common shares, or 28.1 percent. The shares were bought for about $41.4 million.

The filing said Salinas, who owns Mexico’s TV Azteca TVAZTCACPO.MX broadcaster and retailer Elektra (ELEKTRA.MX), bought the shares “with a view towards possibly seeking influence over the management, business and operations” of Circuit City.

    “However, no decision in this regard has yet been made,” according to the filing.

    The filing also said Salinas might acquire additional shares and reserves the right to develop plans or proposals regarding the retailer. It added that he may consider participating in transactions that are part of the Chapter 11 proceeding.

    A Circuit City spokesman declined to comment on the Salinas ownership.

    Circuit City, the second-largest U.S. electronics chain, filed for Chapter 11 bankruptcy protection last week, falling victim to tighter credit terms from vendors and decreased consumer spending. The retailer has said it hopes to emerge from Chapter 11 in the first half of 2009. (Reporting by Karen Jacobs, editing by Maureen Bavdek)

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