Best Buy and Richard Schulze – the founder of the company – have reached an accord that could see him take back control
Richard Schulze announced earlier this month that he wanted to make an attempt to purchase Best Buy and turn it around. At the time he was offering $24 to $26 a share which represented a premium of 36 percent. Since that time, he and the company have gone back and forth in their discussions, with the majority of them landing on the side that the company was simply not interested.
All of that now appears to have changed as The Wall Street Journal is reporting that Best Buy will allow Schulze to access the company’s financial records to carry out due-diligence. The agreement also offers Schulze two board seats so long as he does not make an offer directly to shareholders at this time or violates other aspects of the cooperation agreement. He will than have 60 days to make an offer to the board from the beginning of the review. Should the board reject that offer, he will have another opportunity to do so in Jan. 2013. If it gets to that offer, the board will have 30 days to consider the merits of his offer and tender an answer.
Should the Jan. 2013 offer be rejected, Schulze has agreed to not make another offer for one year after the deal has expired which would place it in February or March of 2014.
Shares of Best Buy are up this morning on the back of this news, which has to be music to shareholder’s ears as the stock hit a nine-year low last week.
[via The Wall Street Journal]