RadioShack Lower as Buyout Looks Less Likely (RSH, BX)

Shares of RadioShack Corp. RSH are lower on the session by 6.30%, currently trading at $20.10. The stock hit a low of $19.11 earlier in the day, right at the opening bell. Dow Jones is reporting that private-equity firms Blackstone Group LP BX and TPG Capital LP are likely to drop their joint bid RadioShack; this information comes from “people familiar with the situation.” Dow Jones also remarked that, “the two firms had emerged as leading bidders for the electronics chain following media reports that the company is for sale.” Buyout speculation about RSH, which has circulated for years, reached a tipping point recently with stock and call buyer coming out of the woodwork. Some retail analysts have said RadioShack is positioning itself for a buyout, noting it's been stockpiling cash and didn't buy back stock in the first quarter despite a $290 million allocation to do so. RadioShack Corporation is engaged in the retail sale of consumer electronics goods and services through the RadioShack store chain and non-RadioShack-branded kiosk operations.