Several takeover rumors cropped up this morning. One of those is that RadioShack (RSH) is in the sights of many possible suitors. Those suitors include Blackstone Group (BX), Kohlberg Kravis Roberts, Bain Capital, TPG, and potentially Best Buy (BBY).
These rumors had the shares trading higher this morning, which is really a continuation of RSH's longer-term trend. Since March 2009, RSH has trekked steadily higher, overtaking the 10-month moving average in the process. That said, the stock is stuck just below the $23 level.
RadioShack should make a nice purchase for any of the rumored suitors, although some may suggest that the retailer has seen its best days. Any of these suitors could benefit from getting a foot in the door in the electronic retail world. However, I am intrigued by the potential of Bet Buy as a buyer. RadioShack would be a great way for Best Buy to expand into mobile-phone sales (as it has stated it will do). I think this reason is why we will see Best Buy make the relatively inexpensive purchase of RadioShack. In addition, buying RadioShack would eliminate one of Best Buy's potential competitors.
Nonetheless, watch for heavy action from RadioShack over the next few days -- unless they are taken over today.