Best Buy buyout talks quiet

This article is provided to FT.com readers by dealReporter—a news service focused on providing insightful intelligence on event driven situations to investors. www.dealreporter.com

--------------------------------------------------------------------------------

Richard Schulze is not moving forward to line up the financing needed to mount a bid for Best Buy (NYSE:BBY), two sources familiar with the matter told dealReporter late last week.

The founder of the Eden Prairie, Minnesota-based electronics retailer has been working for months to develop a plan to take the company private. Schulze has until the end of this month to submit an offer under an agreement he reached with Best Buy’s board of directors last year. Any deal will require the backing of lenders and financial sponsors.

Spokespeople for Best Buy and Schulze did not return requests for comment.

Media reports have said Schulze could look to line up a private equity firm to acquire a minority stake in Best Buy as an alternative to a complete buyout. The executive already owns around a 20% stake in the retailer.

One of the sources questioned whether a new minority investment would be a worthwhile move. Under an agreement Schulze reached with Best Buy’s board of directors last August, he is allowed to take two seats on the board, proportionate to his share ownership.

Last December, Schulze and Best Buy reached an agreement to allow him more time to mount a bid. It could not be learned if Schulze is working to secure another bid date extension.

--------------------------------------------------------------------------------

For more information or to inquire about a trial please email sales@dealreporter.com or call Europe/EEMEA: +44 (0)20 7059 6160 Americas: +1 212 686-3076 Asia-Pacific: +852 2158 9714