Circuit City Rejects Bid

RICHMOND,VA-Circuit City has rejected a $17-per-share bid to acquire the company by private investment firm Highfields Capital Management. A statement from the board of the directors says such an acquisition would not be in the best interest of 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.”

The electronics retailer’s board also authorized a $400 million increase in its stock repurchase authorization, raising the total capacity to $800 million. As of late last month, the retailer has repurchased 28.4 million shares for $344.3 million.