facebook
twitter
rss
account
search
search
 

Best Buy ex-CEO proposes acquisition plan

Aug. 6, 2012 at 11:40 AM   |   Comments

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.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Most Popular
1
Anheuser-Busch not satisfied with the way NFL has handled recent incidents Anheuser-Busch not satisfied with the way NFL has handled recent incidents
2
Creator of 'Honey Badger Don't Care' brand sues for trademark infringement Creator of 'Honey Badger Don't Care' brand sues for trademark infringement
3
Rheinmetall, KBR in joint venture bid for British defense entity
4
New National Security Cutter delivered to Coast Guard New National Security Cutter delivered to Coast Guard
5
First MT30 engine for Korean Navy frigates passes acceptance tests First MT30 engine for Korean Navy frigates passes acceptance tests
Trending News
Video
x
Feedback