Embattled electronics retailer Circuit City this week received a $3.5 billion takeover offer from hedge fund giant Highfields Capital Management. Highfields' ambitious bid, which made headlines on business pages nationwide, is to turn the public company into a private franchise and return it to profitability.
The hedge fund group is already Circuit City's fifth largest shareholder, holding a 5.5% stake in the firm. The price of Circuit City's stock rose more than 20% in a single day to $17.25, as news of the bid hit the street. Analysts say the $3.5 billion offer may be too low for