It’s sad to see how many famous American icons are falling in foreign hands. Recently the Chrysler Building in New York City and Anheuser-Busch Inc., the proud maker of Budweiser and Bud Light beer, were sold to foreign investors.
This time Circuit City is controlled by a Mexican investor. Ricardo Salinas Pliego, who is on Forbes magazine’s list of the world’s richest people recently purchased a large stake in Circuit City. Salinas is the owner of Grupo Salinas, a conglomerate that controls television, retail and cellular businesses in Latin America.
Salinas also controls TV Azteca SA, Mexico’s No. 2 broadcaster; Banco Azteca, one of Mexico’s largest microlenders; and Grupo Iusacell SA, Mexico’s third-largest mobile-phone company.
Salinas now owns a 28 percent stake in Circuit City, the nation’s second-largest consumer electronics retailer, after purchasing more than 47 million shares.
The transactions, which make him the company’s largest shareholder, occurred both before and after Circuit City filed for Chapter 11 protection by mid November.
After the last Great War, the U.S. had the best managed companies in the world. Companies like General Motors, Coca Cola, Kodak, Sears & Roebuck, Alcoa, Pan American and General Electric, just to name a few were the envy of the world. Now many of these companies are gone or in severe economic strains.
Even as we speak, GM, Chrysler and Ford are having problems meeting their cash flow needs and are extending the cap to the U.S. government for a bailout. What is happening with U.S. management? Who will be the next American icon to fall in foreign hands? Walt Disney? Good Day.
Source: Big shareholder sees opportunity in Circuit City – Newsvine.com