Best Buy Offer: Founder Richard Schulze to buy company for $8.8B

By on Aug 6, 2012 in Business, United States, World Comments
Best Buy logo

Best Buy logo
Image Credit: REUTERS/Mark Blinch

Best Buy founder Richard Schulze has reportedly gave an offer to buy the electronics retail giant for $8.8 billion on Monday, August 6, 2012. Schulze‘s Best Buy offer was reportedly contained in a letter sent to the board.

Reports say that Schulze is willing to give shareholders $24 to $26 for each of their shares in the retail company.  Schulze‘s low end offer has a premium of 36 percent while his high end offer represents a premium of 47 percent compared to closing market share price of the company last Friday.

Last June 2012, Schulze resigned as board member of Best Buy. He however, remains as the largest stockholder of the company with 20.1 percent stake.

S.&P. Capital IQ data indicates that if the deal would ever take place, it will be the biggest buyout ever of an American retailer. It will overshadow the 2005 buyout of Toys “R” Us at $8.4 billion.

Richard Schulze
Best Buy Founder Richard Schulze
Image Credit: Best Buy

In a statement, Schulze said that “There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways. I am deeply concerned that further delay and indecision will cause additional loss of both value and talented leaders who are now uncertain of the company’s future.”

 



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