Best Buy founder proposes taking retailer private

Best Buy Co Inc founder and former Chairman Richard Schulze offered to take the struggling electronics retailer private on Monday in a deal that values the company at between US$8.16 billion to US$8.84 billion.

Mr. Schulze, who owns 20.1 percent of the company’s stock, said he would offer to buy the shares he does not already own for $24 to $26 each. He said he has held talks with top private equity firms, but did not name them.

The offer represents a premium of between 36 percent and 47 percent over the closing price of US$17.64 on Friday. Under the plan, Mr. Schulze, who founded the retailer under the name Sound of Music in 1966, would finance the deal through a combination of private equity investment, about US$1 billion of his own equity and debt.

Read Full Article from Financial Post

- Posted: 2012-08-06 11:11:01

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