Report: Private-equity firms bidding for RadioShack
New York City Several large private-equity firms have submitted bids to acquire electronics retailer RadioShack, and competitor Best Buy Co. is said to possibly be among the interested buyers.
According to a report Tuesday by the New York Post, a potential bidding war for RadioShack looms, as potential bidders include Kohlberg Kravis Roberts, Bain Capital, Blackstone Group and TPG.
The Post also said at least one strategic bidder is participating in the auction, possibly Best Buy.
RadioShack hired Goldman Sachs to explore strategic alternatives including a potential sale of the company that could garner in excess of $3 billion. The initial bidding round was completed last week, and Blackstone is a leading participant, according to the report.
This week, CEO Julian Day and other RadioShack executives are slated to give presentations to bidders.
RadioShack's retail rival Best Buy has kept an "extremely low profile" during the process, one banking source said, and it isn’t yet clear whether it is among the bidders.
Still, at least one "strategic" bidder -- possibly a competing retailer, and possibly Best Buy -- is already participating in the auction, now that the first round of bids are in, according to the report.
Blackstone Group’s participation in the auction is notable, say industry watchers, because the firm has made few investments in the retail industry -- with the exception of Michael's Stores, the report said.