Fry’s Bids $22.2 Million for Cyberian Outpost

Fry’s Electronics Inc. offered to buy Internet retailer Cyberian Outpost Inc. for $22.2 million or more in cash, saying its proposal is superior to one made by PC Connection Inc. San Jose-based Fry’s said in a regulatory filing that it’s prepared to pay 70 cents a share for the operator of the Outpost.com Web store.

Merrimack, N.H.-based PC Connection agreed in May to buy Cyberian Outpost for 40 cents to 82 cents a share in stock, or as much as $25.9 million. The final price will be based on a formula taking into account PC Connection’s stock price and Cyberian Outpost’s revenue.

Closely held Fry’s has asked to review Cyberian Outpost’s nonpublic information and said it might increase the offer after the review.

Fry’s also said it recently increased its stake in Kent, Conn.-based Cyberian Outpost to 10.9%, or 3.47 million shares, from 9.97%. Cyberian Outpost closed down 2 cents at 53 cents on Nasdaq before the news was announced.