US electricals and entertainment giant Circuit City has been cleared by Canadian authorities to acquire the InterTan chain.
The first offer deadline will expire on Tuesday, by which time Circuit City must secure agreements from shareholders to sell the majority of the shares for US$14 each (£8), valuing the company at US$284 million (£158.8 million).
However, Circuit City continues to face the possibility of litigation from one of its fiercest US rivals, RadioShack Corporation, over the use of the RadioShack name in Canada by InterTan.
RadioShack wants InterTan to be prevented from using its name following a sale to Circuit City. InterTan was spun-off from RadioShack Corp in 1987. However, in a Securities and Exchange Commission filing, InterTan said it would 'continue to take all appropriate actions to protect its rights under the RadioShack agreements' penned in 2001.
A court date has been set for May 21 for an injunction hearing, at which RadioShack will seek to have InterTan barred from using the name at 500 Canadian stores and more than 300 RadioShack dealers.
A mediation session will also be held on May 10 in an attempt to divert the impending legal wrangle.
Circuit City and RadioShack have both remained tight-lipped over the case. It is not yet clear whether Circuit City would be keen to remove the RadioShack name from stores if its bid is successful.
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