Best Buy Founder Richard Schulze to Proceed with Due Diligence to Take the Company Private
August 28, 2012 8:53 AM
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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
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 However, the two seats could be withdrawn if Schulze decides to make a purchase offer directly to shareholders or violates standstill provisions of the agreement.
Wall Street Journal
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8/28/2012 11:22:19 AM
God I swear, you never know what you're talking about.
Consumer and investor uncertainty is at an all time high under Obama. Companies are literally twisting in the wind, not knowing which way to turn because they have no idea what this Administration will do next. They're holding onto their cash in record amounts because to invest in this economy is WAY too much of a risk. You can't make a 5 year plan right now before the election. Because if Obama wins, any growth plan you had is going to be tossed.
8/28/2012 2:22:40 PM
I'm sure you say this as a small business owner who is just swaying in the wind right now. lol.
8/28/2012 4:44:33 PM
ah the old crocodile-tear, reverse-shill, fake-martyr argument. i love it. reminds me of when little babies cry to mommy that their brother stole their cookie. or when dennis rodman does one of his legendary basketball flops.
you don't seriously buy that bullshit crybaby manipulation do you reclaimer? the business interests in america are the foxes guarding the henhouse. they control everything, including *gasp* the obama administration.
wake the fuck up man, i'm so tired of your tunnel-vision on this.
"If you can find a PS3 anywhere in North America that's been on shelves for more than five minutes, I'll give you 1,200 bucks for it." -- SCEA President Jack Tretton
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