ANALYST: CIRCUIT CITY'S TOPSH PRIORITY OULD BE STORES.

HFN: The Weekly Newspaper for the Home Furnishing Network, February, 2005 by Rudnick, Michael

Byline: Michael Rudnick

RICHMOND, Va.-Following last week's news of Circuit City Stores Inc. receiving a roughly $3.25 billion buyout offer from Highfields Capital Management LP, the company's first priority must be store revitalization to stay competitive, said Dana Telsey, equity analyst with Bear Stearns.

Highfields, which owns roughly 6.8 percent of Circuit City, offered to purchase the retailer's outstanding shares at $17 in cash per share with the goal of improving operational performance. Telsey noted, however, that a significant issue facing Circuit City management is its real estate portfolio, which is instead structural in nature.

"Always the problem is stores -- relocation and mix -- whether the retailer is public or private,"...