Best Buy hires ex-Carlson CEO as founder seeks LBO




Best Buy Co. Inc. has named Hubert Joly as its new CEO. Joly resigned from his position as CEO of Carlson Cos. to take the Best Buy job.

Meanwhile, Best Buy’s founder, Richard Schulze, continues to press his attempt to take the company private.

The

New York Times’


Deal Book blog reported

that Best Buy announced it had offered to grant Schulze access to information to help him form an investor group, but Schulze rejected its offer. According to the

Times

report, the company said it was willing to waive a provision of Minnesota corporate law that would allow Schulze to formalize his investor partnership and take it to shareholders after Jan. 1.

The

Times

reported that Schulze “was unhappy with some of the terms” of Best Buy’s offers.

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Initially, Best Buy had demanded that Schulze refrain from going to shareholders or calling a special investor meeting fro 18 months, the

Times

article said. This period was later shortened to one year and then again reduced to Jan. 1.

Schulze owns 20.1% of Best Buy’s stock. His deal would be worth $8 billion to $9 billion and would be financed through private equity investment, his own equity and debt financing, a


Minneapolis/St. Paul Business Journal

article said.

(Sources: Deal Book,

New York Times,

Aug. 19, 2012;

Minneapolis/St. Paul Business Journal,

Aug. 19, 2012.)

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