Mexican Tycoon Grabbing Major Circuit City Stake

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Mexican billionaire Ricardo Salinas Pliego is now purchasing a large percentage of Circuit City shares, according to recent regulatory filings.

Pliego grabbed allotments of 5.3 million, 5.2 million, and 19.8 million shares starting last week, on top of an existing stronghold of 16.8 million.  That makes Pliego the largest shareholder of Circuit City, at roughly 28 percent.

The purchasing activity started November 12th, just two days after the company declared bankruptcy.  In Mexico, Pliego controls a diversified portfolio of companies that span retail, consumer electronics, mobile, and media sectors.  He is the chairman of Grupo Elektra SA, a consumer electronics retail giant; TV Azteca SA, a massive television broadcaster in the region; and Grupo Iusacell SA, a major mobile group.

Pliego is ranked as the fourth-richest Mexican, and one of the richest individuals in the world.  Circuit City is currently closing stores and restructuring amidst a serious consumer spending downturn.

Story by news analyst Alexandra Osorio.