Best Buy Extends Deadline for Bid by Company Founder

by Sean P. Aune | December 17, 2012

Richard Schulze

Schulze's Plans for Best Buy

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Richard Schulze, the founder of Best Buy, has been given an extension by the Board of Directors to enter his bid to buy back the company.

It was reported back in Oct. that Schulze had begun his due diligence process on Best Buy’s financial records, and under the original agreement he would have 60 days to submit a bid. Reuters is reporting that the Board of Directors has now said he can submit his bid any time during Feb. 2013 so that he will be able to view the entire year’s financial results, including the all important holiday season. Once the bid is submitted, the Board will have 30 days to review it and give its decision.

While the official announcement is that this delay is due to wanting to allow Schulze to view more records, some analysts are a bit more suspicious. “Obviously with the extension, there is still some hesitation on the part of his private equity suitors about how much financing they would want to put up for this deal,” Morningstar analyst R J Hottovy told Reuters.

Under the original agreement, should Schulze’s bid be rejected he would have had a second window at the end of Jan. 2013 to submit a bid, and should that one have failed, he would have had to wait a year to submit another. There is no word as of yet what the plans are if the Board passes on this Feb. 2013 bid.

Schulze founded Best Buy in 1966, and servered on the Board of Directors for many years until protege, Brian Dunn, was ousted in a scandal involving a female subordinate. Since that time Schulze has been attempting to find a way to take back

Reuters


Sean P. Aune

Sean P. Aune has been a professional technology blogger since July 2007, but his love of tech dates back to at least 1976 when his parents bought...