Best Buy founder and former CEO Richard Schulze is seeking to buy out the troubled big box retailer
. On Friday, Best Buy gave Schulze an extension of 30 days to do due diligence (alliteration alert) before deciding whether or not to enter a bid for the electronics seller. The new deadline for Schulze is February 28th which will allow him to see how well Best Buy does over the holiday season.
Best Buy's founder wants to buy the company
Three private equity firms are working with Schulze to put together an offer for Best Buy, which is expected to be one of the largest takeover bids in the last few years. After a bid is made, Best Buy's board of directors will have 30 days to mull over the offer and make a final decision
on whether or not to accept it.
The original agreement between Schulze and his brainchild was signed by both parties on August 26th, and allowed the chain's founder to access certain Best Buy information in order to conduct due diligence and gave him permission to form an investment group to make a fully financed bid for the company.
"Both parties believe that allowing Mr. Schulze to bring his offer after the holiday season and fiscal year end is in the best interests of shareholders and provides Mr. Schulze and his potential partners with an opportunity to include the Company’s full year results as part of their due diligence review. Accordingly, Best Buy and Mr. Schulze have mutually agreed that Mr. Schulze will have the opportunity to deliver the proposal to the Board of Directors on or after February 1, 2013 through February 28, 2013. The Board would, within 30 days, review and take a position on any such offer, consistent with its fiduciary duties and in the best interests of shareholders. There is no guarantee that Mr. Schulze will present an offer, or that such an offer would be accepted by the Board of Directors."-Best Buy