Richard Sennott/The Star Tribune, via Associated PressRichard M. Schulze, Best Buy’s founder, with an employee at a Minnesota store in 2000.Best Buy said on Monday that it had finally agreed to let its founder, Richard Schulze, take a closer look at its financial statements to help him firm up his potential takeover proposal for the electronics retailer.
The pact follows more than a week of negotiations between the two sides, a time punctuated by prickly public statements by both sides as they jockeyed over terms of a prospective agreement.
Earlier this month, Mr. Schulze 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.
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Documents: Best Buy news releaseMr. Schulze and his potential partners and financial backers will now gain access to Best Buy’s books immediately. They will then have 60 days to present a fully financed deal.
Should Best Buy’s board reject Mr. Schulze’s proposal, he would have to wait until January to make a second offer. Company directors would then have 30 days to review the newer plan before Mr. Schulze could 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. (He already owns a 20 percent stake.)
If the second offer is rejected by the board and by shareholders, Mr. Schulze would then be barred for a year from making a new offer to buy the company.
Best Buy is offering Mr. 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.
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