by Christopher Freeburn | October 3, 2012 11:08 am
The founder of Best Buy (NYSE:BBY) is attempting to put together a new bid for the retailer.
Richard Schulze and a number of private equity firms are reviewing the chain’s financial records. While negotiations between Schulze and the firms remain on-going, sources say Schulze hopes to form a consortium in order to finance a new bid for the company, Reuters noted.
Terms of a deal between Schulze and the equity firms remain to be determined. Schulze holds about 20% of Best Buy stock. Sources indicated that a new offer to acquire Best Buy could be worth $11 billion.
Shares of Best Buy rose more than 3% in Wednesday morning trading as investors digested the latest news.
Joining Schulze in the due diligence are Cerberus Capital Management, Apollo Global Management (NYSE:APO), Leonard Green & Partners and TPG Capital. Credit Suisse (NYSE:CS) continues to advise Schulze on the potential buyout.
Formerly the company’s chairman, Schulze resigned in May after it emerged that he knew about an improper relationship between ousted CEO Brian Dunn and a female employee, but failed to inform the board.
Schulze presented Best Buy with an $8.84 billion offer back in August, but the board questioned his financing. The two sides then wrangled over terms of possible due diligence before reaching an agreement that let Schulze see the companies books, in exchange for a timetable on future bids. He has a 60-day window to formulate a new bid.
Best Buy has struggled to fend off competition from discount online vendors like Amazon (NASDAQ:AMZN). The chain hired turnaround expert Hubert Joly as its new CEO in August.
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