Hedge Funds

Circuit City rejects Highfields bid


Circuit City this week rejected Highfields Capital Management's $3.5 billion bid, opting to put forward its own revitalization plan to make the company more competitive with retailers.

Highfields Capital Management had about 7% of the retailer's stock when it announced its bid last month. The hedge fund's plan was to acquire Circuit City and take the company private. But the hedge fund's bid may have helped unlock the company's value to some degree anyway. Since the failed bid was first announced, Circuit City has changed members of its management team and even dropped an apparently money-losing alliance with