Best Buy bid deadline extended for founder Richard SchulzeBy Alex Jusi Madlangbayan on Dec 15, 2012 in Business, Lifestyle, Shopping, United States, World •
The Best Buy bid of founder Richard Schulze has been extended to February 28, 2013, according to the consumer electronics retailer’s report on Friday, December 14, 2012.
Schulze reportedly proposed to acquire Best Buy for $24 to $26 per share, or a total of $8.16 billion to $8.84 billion in a bid last August.
Best Buy allowed the bid extension so that Schulze can make a due diligence review of the full-year results of the company. Schulze will also have more time to gather more partners and financing in his Best Buy bid.
The bid extension has allowed Schulze to submit his offer any time during February. Best Buy will reportedly review his bid within 30 days before making a decision.
Schulze revealed that his bid will be funded through private equity, debt financing and reinvestment of some of his own equity in the company.
Reuters reported that an anonymous source revealed that Schulze does not yet have enough financing for a December bid.
The Best Buy founder reportedly remains its largest shareholder with about one-fifth of the company’s outstanding shares.
Matt Furman, Best Buy spokesman said that the company does not expect the bid extension to affect their holiday sales. Furman added that the retailer company is “determined to have a strong holiday season,” both in stores and online.
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