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.
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