backtop


Print


  (Source: EfficientGuide)
Schulze has 60 to offer a purchase proposal

Retail electronics giant Best Buy has been going through some rough times as the company faces increasing pressure from online and discount retailers such as Amazon and Walmart. Best Buy founder Richard Schulze announced about a month ago that he was considering an attempt to take Best Buy private with private equity or possibly selling his 20% stake in the company. 
 
The Best Buy board and Schulze have announced that they have reached an agreement that will permit Schulze to form an investment group and conduct due diligence needed to make a fully financed proposal to acquire Best Buy. The agreement establishes a non-exclusive, orderly process with Schulze and has been filed with the SEC.
 
The agreement allows Schulze to perform immediate due diligence with access to non-public company information to be shared with advisors and potential private-equity partners. Under the terms of the agreement, Schulze will be allowed to bring forward a fully financed and definitive proposal within 60 days of the beginning of the due diligence period. The due diligence period can also be extended in certain circumstances.
 
Schulze has also agreed that if his proposal is rejected by the Board of Directors, he will not pursue an acquisition until January 2013. At that time, Schulze will have the opportunity to make a second offer if the original is rejected. The Wall Street Journal reports that Schulze has previously publicly announced that he was proposing a $10 billion buyout of the company he helped found and that his financial partners were "highly confident" that the money to purchase the company could be raised.
 
Best Buy has also announced that it will offer Schulze two seats on the company's board reflecting the 20% of the company he owns. However, the two seats could be withdrawn if Schulze decides to make a purchase offer directly to shareholders or violates standstill provisions of the agreement.

Sources: Reuters, Wall Street Journal





"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs






Most Popular ArticlesNew iMac and Release Date
February 4, 2017, 9:30 AM
UMi Plus E – Powerfully Breaking Through 2017
February 15, 2017, 7:30 AM
Can your smartphone make you a safer driver?
February 15, 2017, 6:20 AM
Nvidia Titan X – Still The Ultimate Graphics Card
February 16, 2017, 6:16 AM
How Apple watch Series 2 differ from the S1
February 18, 2017, 5:37 AM







botimage
Copyright 2017 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki