RadioShack (RSH) Shares Plunge As Takeover Interest Dies

RadioShack Corp. (RSH) shares declined Wednesday 9 percent to $20.52, the most intraday since May 6, as the hype surrounding a potential takeover of the co. dies down. According to a CNBC report, RadioShacks’ so called soft auction for its sale has seen a slowdown in interest from potential bidders, prompting investors to speculate whether the consumer electronics chain is still an attractive buyout target.

Stephen Chick, an analyst with FBR Capital Markets & Co., said Tuesday that RadioShack is an attractive acquisition because its stock price (which keeps heading north) is undervalued and the company’s business has been faring well.

In April, RadioShack reported its Q1’10 profit grew more than 16%.

CNBC also notes in its report that the asking price from RadioShack is said to be high.

RSH lost $1.11, or 4.95 percent, to $21.46 at 11:32 a.m. EDT in NYSE trading.

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