Best Buy founder submits bid to buy the company
By Staff and wire reports2012/8/06
Best Buy's founder, Richard Schulze, said Monday that he wants to take the electronics retailer private by buying up all the outstanding shares he doesn't already own for $24 to $26 each.
Best Buy shares (BBY) jumped 22% on the news.
Schulze stepped down as Best Buy's chairman in May after an investigation found that he knew CEO Brian Dunn was having a relationship with a female employee. Dunn resigned in April.
MORE: Schulze statement, letter to Best Buy board
Schulze's buyout offer represents a 36% to 47% premium over Best Buy's Friday closing stock price
of $17.64.
Schulze is Best Buy's largest shareholder, controlling about 20% of its shares.
He says he's developed a plan to deal with the struggling company's challenges and has talked with private equity firms about financing.
Schulze says he plans to finance the deal through a combination of private equity investments, about $1 billion of his own equity and debt.
Here is what Schulze's press release says in part:
"Credit Suisse, Schulze's financial advisor, has informed him it is highly confident it can arrange the necessary debt financing. Schulze has also held discussions with many highly regarded former Best Buy executives, including former CEO Brad Anderson and former President and COO Allen Lenzmeier, interested in rejoining the company."
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