Circuit City Opens Books, Settles Proxy Fight

New York, NY (AHN) - Circuit City said Friday it will open its books to Blockbuster and shareholder Carl Icahn and has agreed to settle a battle over naming nominees to the troubled electronics retailer's board of directors.

Circuit City CEO Philip J. Schoonover said the decision to open its books is not a sign it is closer to agreeing on Blockbuster's $1 billion acquisition offer announced in April.

Schoonover also said it settled with Wattles Capital Managment LLC to avoid a "costly and disruptive proxy contest" while it considers alternatives to regaining profit. As part of the agreement, the company will let the shareholder group name three board members for election. The group had called for Schoonover to exit.

The electronics retailer said it won't comment further until its board "approves a course of action," according to the Wall Street Journal.