Unusually High Volume In Radioshack Options = Dell Takeover Attempt?

Discussion in 'Wall St. News' started by archon, Apr 24, 2008.

  1. archon

    archon

    http://www.bizjournals.com/austin/stories/2008/04/21/daily28.html

    Is Dell planning to acquire RadioShack?
    Austin Business Journal

    Company officials aren't talking, but rumors are rampant that Dell Inc. plans to acquire Fort Worth-based RadioShack, according to the Fort Worth Star-Telegram.

    On Monday and Tuesday, an unusually high number of RadioShack (NYSE: RSH) stock options were traded, which could be the result of "unsubstantiated rumors" that the Austin computer giant is planning to purchase the retail chain, the Star-Telegram reported Wednesday.

    The idea isn't as far-fetched as some analysts might think. In a May 2007 article, BusinessWeek suggested the acquisition of RadioShack's 4,000-plus stores would give Dell (Nasdaq: DELL) "a meaningful retail footprint" in which to sell its PCs. ...
     
  2. and sell electronics, radio cars, batteries, and telephone cords?
     
  3. it would be genius...

    they would get overnight retail presence - an attempt to fix their business model maybe? buy it on the cheap. comes with a database of compter heads??

    just a thought..
     
  4. nkhoi

    nkhoi Moderator

    make more sense than blockbuster and Circuit City deal
     
  5. paden

    paden

    quick, open a franchise and get rich after the buyout
     
  6. archon

    archon

    I love the idea of Dell buying Radio Shack just to get their hands on Radio Shack's list of battery buyers.


    Classic!
     
  7. I honestly don't understand why Dell go retail. Isn't Gateway a good example?

    Stay online/telephone and keep the cost low.
     
  8. I read a very convincing article linking Dell's declines to straying from their just-in-time inventory direct buying model.