Best Buy buyout proposed to take electronics retailer private

Best Buy Co., Inc. (NYSE: BBY) today confirmed that its Board of Directors has received a letter requesting due diligence and outlining an unsolicited, highly conditional indication of interest from Richard Schulze, former chairman of Best Buy, to acquire all of the outstanding shares of Best Buy that he does not already own for a per-share price of $24 to $26.   This has come through a public letter addressed to the Board.

Best Buy’s Board of Directors will review and consider the letter in due course, consistent with its fiduciary duties, in consultation with its financial advisors, Goldman, Sachs & Co. and J.P. Morgan and its legal advisor, Simpson Thacher & Bartlett LLP.  Best Buy said that its Board of Directors will evaluate this proposal carefully and will, as always, pursue the best course for its shareholders.

The news caused Best Buy’s stock to jump several points. Taking the company private could allow Best Buy the greater flexibility it needs to revamp the electronics retailer and allow it to keep up with competitors like Amazon.com and NewEgg.

Best Buy published the notice as a press release. Would the buy out be the best option for shareholders? Probably, but that will depend on how Best Buy sees it.



Categories : Business
Posted by Jason Hamilton | August 7, 2012  |  No Comment

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