Haven't we learned anything about Wall Street financing lately?
Buyout Target Says Show Us the Cash; Suitor Explores How
By MERISSA MARR and GARY MCWILLIAMS
April 21, 2008; Page B2
Circuit City Stores Inc. is demanding that Blockbuster Inc. prove it can finance an all-cash offer before proceeding with takeover negotiations. The big question is how Blockbuster will do that.
Blockbuster is exploring several avenues, including using Circuit City's own balance sheet to finance its more than $1 billion offer, according to people familiar with the situation. The Dallas video-rental company is also considering using its existing debt facility, possible asset sales and cost savings, those people said.