Best Buy Co. has given its founder, Richard Schulze, access to its books. The agreement allows Schulze, who owns 20% of the company, to form an investment group and prepare a takeover bid for the company.
According to the
Wall Street Journal
,
under the agreement Schulze has 60 days from the start of his due diligence to present an offer. If the board rejects it, he may present a second proposal, but not until January — after the holiday shopping season. If the board rejects the second offer, he may take a bid directly to shareholders.
The Best Buy board also will offer two board seats to Schulze, reflecting his stake in the company, but will withdraw that offer if Schulze takes his proposal directly to shareholders or violates provisions of his agreement with the company, the
Journal
article said. (Source:
Wall Street Journal,
Aug. 28, 2012.)
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