MINNEAPOLIS, Aug. 6 (UPI) -- Richard Schulze, founder and former chairman of the Minnesota-based Best Buy Co., submitted a proposal Monday to acquire the electronics and appliance chain.
In documents to the company's board of directors, Schulze proposed buying all outstanding shares he doesn't already own for a cash price of between $24 and $26 per share.
"This proposal ... would create a new day for Best Buy employees and provide public shareholders with a significant all-cash premium for their shares," Schulze said in a release. "Importantly, it would eliminate the market and execution risk for Best Buy shareholders associated with a turnaround under an interim [chief executive officer], while giving the company the time and flexibility to take the steps it needs to win back customers and reinvigorate Best Buy's trusted brand and culture."
Schulze, who controls 20.1 percent of Best Buy shares and is the Richfield, Minn.-based company's largest shareholder, said he would prefer to work cooperatively with Best Buy's board on his acquisition proposal. He said he would finance the proposed acquisition through investments from the private equity firms, reinvestment of approximately $1 billion of his own equity, and debt financing.