Best Buy‘s (NYSE:BBY) founder and former chairman Richard Schulze is getting access to the company’s finances to help bolster his buyout bid for the struggling big box retail chain.
The company said on Monday that it has reached an agreement with Schulze under which he can examine the chain’s financial records. Schulze had announced an $8.84 billion bid for the business earlier this month, but negotiations with Best Buy stalled. Last week, the company said it had ended talks with Schulze after he failed to comply with their requirements.
Under the new deal, Schulze has 60 days to examine the company’s books and prepare a formal offer for the company. He will also get two seats on the company’s board to represent his existing 20% stake in the retailer, Reuters noted.
Additionally, Schulze will have to wait until the beginning of next year to make a second offer, should the board decline his initial bid. He will have to wait a year after that to launch a third bid if the board passes on the second try.
In order to make a credible bid for the company, analysts said Schulze needed to raise between $2 billion and $3 billion in private equity. He is currently working with Credit Suisse (NYSE:CS) and has indicated that he can line up the required financing.
Schulze was ousted as chairman back in May after the board learned that he knew about former CEO Brian Dunn’s inappropriate relationship with a female employee and didn’t report it.
Last week, Best Buy posted sharply lower second-quarter earnings that missed Wall Street forecasts and suspended its profit guidance for the year. It also hired turnaround expert Hubert Joly to oversee the restructuring of its operations.
Shares of Best Buy edged up about 1% in Tuesday morning trading.