Wed, Aug 08, 2012 - Page 15 News List

Best Buy founder seeks control of firm

AFP, NEW YORK

The founder and former chairman of Best Buy on Monday offered to take full control of the struggling electronics retailer in a deal valuing the firm at up to US$8.84 billion.

Richard Schulze, who owns about 20 percent of the chain, proposed to buy the shares he does not already own at between US$24 and US$26 per share, representing a premium of up to 47 percent on Friday’s closing price of US$17.64.

Best Buy confirmed it had received Schulze’s letter to the board requesting due diligence and outlining “an unsolicited, highly conditional indication of interest” in acquiring the shares.

The company said the board will evaluate his proposal “carefully and will, as always, pursue the best course for its shareholders.”

Best Buy swung into loss in this year’s fiscal year, that ended on March 3, losing US$1.23 billion.

The global electronics chain is struggling against competition from online retailers and plans to close 50 US stores by the end of this year.

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