Best Buy Buyout May Be Off, Shares Surge

The chain's founder will now seek a new minority stake

   

Best Buy 300x199 Best Buy Buyout May Be Off, Shares SurgeRichard Schulze’s bid to regain control of the electronics retail chain he founded in 1966 may be nearing an end.

Sources tell Reuters that Schulze is looking for investment partners to buy a minority share in Best Buy (NYSE:BBY) instead of trying to acquire the whole company after failing to obtain the required financing to take the retailer private. Schulze currently owns about 20% of Best Buy.

BestBuyLogo e1297955683480 Best Buy Buyout May Be Off, Shares Surge
Best Buy’s Big Coupon Mistake Causes Chaos

Shares of Best Buy surged about 5% in Thursday morning trading.

Last year, Schulze announced plans to launch a takeover bid for the struggling big-box retailer, valuing the company at as much as $11 billion.

That came after he was forced to resign as Best Buy’s chairman in May when it emerged that Schulze failed to inform the board after discovering an inappropriate relationship between ousted CEO Brian Dunn and a female employee.

In August, Best Buy hired turnaround expert Hubert Joly as its new CEO.


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/best-buy-buyout-may-be-off/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.