By Kevin McCauley
Sard Verbinnen & Co. is fronting the bid by Best Buy founder Richard Schulze to take the electronics retailer private in a deal worth $8.8B.
The 71-year-old Schulze, who owns a more than 20 percent Best Buy stake, relinquished the chairman post in June after a probe ruled that he failed to act decisively on allegations over then-CEO Brian Dunn’s relationship with a female staffer.
In a letter to Best Buy chairman Hatim Tyabi released today, Schulze wrote: “Since stepping down from the Board on June 7th, I have been actively exploring all available options for my ownership stake. That exploration has reinforced my belief that bold and extensive changes are needed for Best Buy to return to market leadership and has led me to the conclusion that the company's best chance for renewed success will be to implement these changes under a different ownership structure.
Best Buy confirmed that its board has “received a letter requesting due diligence and outlining an unsolicited, highly conditional indication of interest from Richard Schulze, former chairman of Best Buy, to acquire all of the outstanding shares of Best Buy that he does not already own for a per-share price of $24 to $26.”
It promised to “review and consider the letter in due course, consistent with its fiduciary duties, in consultation with its financial advisors, Goldman, Sachs & Co. and J.P. Morgan and its legal advisor, Simpson Thacher & Bartlett LLP.”
SV&C’s George Sard and David Reno represent Schulze. |