What is Going on With Richard Schulze’s Plan to Take Best Buy Private?
A noticeable lack of news from Richard Schulze has been good news for Best Buy (NYSE:BBY) — no concrete updates regarding his plan to take the company private have been provided since the electronic retailer’s founder requested more time to take due diligence in early December. In the meantime, shares had been drifting up slightly higher; since the beginning of the year, the stock has gained 33 percent in the absence of any real drivers.
But shares got a sharp jolt on Wednesday when The Wall Street Journal reported that Schulze was considering scrapping his buyout plans. Investors quickly sold out, causing shares to drop 2 percent.
Since Schulze’s unsolicited first offer to take the company private last August was rejected by the board, he has extended the timeline for his second, amended offer several times. In August, he said he would buy the company for $24 to $26 per share, which would value it between $8.16 billion and $8.84 billion. However, analysts believe that Schulze’s final offer will be considerably lower than planned, as the electronics retailer’s stock price has fallen by close to 20 percent since the original offer was made…