Schulze 'shocked' at Best Buy statement
Source: Agencies |
August 21, 2012, Tuesday
|
Print Edition
Print Edition
TALKS between struggling retailer Best Buy Co Inc and its founder Richard Schulze over taking the company private have broken down after the company said Schulze had rejected its offer to conduct due diligence.
The consumer electronics company, which owns mobile phone retailer Carphone Warehouse, said it had shown "great flexibility," offering Schulze a proposal that would have given him 60 days to put together a deal for the company and the opportunity to take a buyout offer directly to shareholders from January.
"Mr Schulze did not accept the company proposal," it said in a statement.
A source familiar with the situation said Schulze and his team were "shocked" by the Best Buy statement because they thought they were still in talks over an agreement on due diligence.
"I am disappointed and surprised by the Best Buy board's abrupt termination of our discussions," Schulze said in a statement yesterday.
Schulze, the 71-year-old former chairman of Best Buy, said in a letter to the board this month that he was interested in teaming up with private equity partners to buy the company for US$24 to US$26 per share.
Schulze, who owns about a fifth of Best Buy's shares, has said he plans to fund a deal through a combination of investments from private equity firms, debt financing and the reinvestment of about US$1 billion of his own equity.
The consumer electronics company, which owns mobile phone retailer Carphone Warehouse, said it had shown "great flexibility," offering Schulze a proposal that would have given him 60 days to put together a deal for the company and the opportunity to take a buyout offer directly to shareholders from January.
"Mr Schulze did not accept the company proposal," it said in a statement.
A source familiar with the situation said Schulze and his team were "shocked" by the Best Buy statement because they thought they were still in talks over an agreement on due diligence.
"I am disappointed and surprised by the Best Buy board's abrupt termination of our discussions," Schulze said in a statement yesterday.
Schulze, the 71-year-old former chairman of Best Buy, said in a letter to the board this month that he was interested in teaming up with private equity partners to buy the company for US$24 to US$26 per share.
Schulze, who owns about a fifth of Best Buy's shares, has said he plans to fund a deal through a combination of investments from private equity firms, debt financing and the reinvestment of about US$1 billion of his own equity.
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