Tycoon Salinas eyes possible Circuit City bid

By Cyntia Barrera Diaz

MEXICO CITY (Reuters) - Mexican retail and media tycoon Ricardo Salinas Pliego is evaluating all scenarios regarding Circuit City Stores Inc, including a possible bid for the troubled U.S. electronics chain, a spokesman for the businessman told Reuters on Monday.

Circuit City (CCTYQ.PK: Quote, Profile, Research) received court approval last week to put itself up for sale and said it was in talks with two undisclosed parties that could either buy the bankrupt company or provide additional financing.

Luis Nino de Rivera, a spokesman and aide for Salinas, declined to say whether the Mexican businessman was one of the two suitors mentioned by Circuit City on Friday.

Asked whether Salinas was considering bidding for the U.S. retailer before the scheduled January 16 hearing, Nino de Rivera said: "That's the type of analysis currently under way; all possibilities are being evaluated."

Circuit City's shares jumped 21 percent to 37 cents Monday afternoon in pink sheet trading.

A ruling by a U.S. bankruptcy court judge would let Circuit City proceed with an auction of the company and its assets beginning on Tuesday, with liquidation possible should no sale occur.

But a lawyer for Circuit City said the company hopes to have a going-concern buyer in place by the end of Wednesday.

Salinas has built up a stake of at least 28 percent in the U.S. retailer and is conducting a thorough analysis of its business. He has agreed not to buy more shares without first notifying the company and U.S. authorities.