Unusually High Volume In Radioshack Options = Dell Takeover Attempt?

[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. ...

 

[gymratnyc]

and sell electronics, radio cars, batteries, and telephone cords?

 

[niceneasy]

Quote from gymratnyc:

and sell electronics, radio cars, batteries, and telephone cords?

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..

 

[nkhoi]

make more sense than blockbuster and Circuit City deal

 

[paden]

quick, open a franchise and get rich after the buyout

 

[archon]

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


Classic!

 

[eveningtrader]

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

Stay online/telephone and keep the cost low.

 

[Thermactor]

Quote from eveningtrader:

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

Stay online/telephone and keep the cost low.

I read a very convincing article linking Dell's declines to straying from their just-in-time inventory direct buying model.