Electronics retailer Best Buy Co., Inc.(NYSE:BBY) has decided to open up is financial statements to the inspection of its founder Richard Schulze to help him take a decision on a proposal to take over the company.
Earlier in August, Schulze, who owns 20 percent stake in the company, proposed buying the company he founded 46 years ago for up to $8.8 billion.
Best Buy, however, has been cautious, preferring at the moment to stick to a turnaround effort that will be led by its incoming chief executive, Hubert Joly.
The two parties have been jockeying back and forth on their positions for more than a week, but negotiations have not brought forth any firm decisions.
Schulze along with his financial backers are expected to pour over the books of the company. They have been given about 60 days to present a fully financed deal.
If Schulze's offer is not acceptable to the board of Best Buy, he can wait till January to make another offer.
The directors in the company would take 30 days to review the second offer. Then Schulze can go directly to Best Buy’s shareholders, at either its annual investor meeting or at a special meeting that he could call with the support of 25 percent of stockholders.
If, however, the second offer is rejected by the board and by the shareholders, Schulze would be barred for a year from making a new offer to buy the company.
Best Buy is offering Schulze two seats on its board, though he cannot retain them if he takes an offer directly to shareholders or if he violates his agreement.
Shares in Best Buy rose 3.24 percent at $17.87.