Richard Schulze, founder and former chairman of Best Buy Co., has made an informal proposal to buy the company for about $10 billion and take it private. Schulze owns 20% of the Minnesota-based company and is its largest shareholder,
the
Wall Street Journal
noted.
Schulze “remains tied to Best Buy through a web of business deals and a foundation that also involve his brother and daughter,” the
Journal
article said.
Schulze stepped down from the chairman’s post in June amid lagging sales and a corporate governance scandal. Best Buy’s audit committee found that he knew about former CEO Brian Dunn’s inappropriate relationship with a female subordinate before the board knew.
Under Minnesota law, Schulze needs the approval of the board before he can submit a formal bid, the
Journal
report noted. The article said the board faces a dilemma: “How does it deal with a man who no longer calls the shots but still has considerable sway over its future?”
The
Journal
article said some investors have questioned Schulze’s ability to secure financing for a buyout. Such a deal would involve more debt than other recent large buyouts, the article said. (Source:
Wall Street Journal,
Aug. 7, 2012.)
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