Reuters Sources: Best Buy Founder Explores Buyout

Tuesday, 26 Jun 2012 05:06 PM

 

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Best Buy Co. Inc. founder Richard Schulze is working with banks including Credit Suisse to explore a potential private takeover of the world's largest consumer electronics retailer, three sources close to the matter said on Tuesday.

Schulze resigned from the company's board earlier this month and said he was exploring options for his 20.1 percent ownership stake.

It is still early days for any outcome, the sources said.

Schulze is expected to wait until the company lays out a turnaround strategy in September, one of the sources said. The strategy could include naming a permanent CEO and a plan to fend off online rivals such as Amazon.com Inc.

On Monday, interim CEO Mike Mikan met with investors at an analyst event in New York, giving the impression that he would stay on as permanent CEO, according to an investor present at the meeting. Mikan has been on the retailer's board since 2008.

A representative for Schulze and Credit Suisse declined to comment. Best Buy was not immediately available for comment.

Last week, the company's board set 25 percent as the minimum threshold of ownership required for a shareholder to call a special meeting on a change of control. The previous threshold was 10 percent.

© 2014 Thomson/Reuters. All rights reserved.

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