Best Buy founder offers to take company private for at least $8.16 billion

Best Buy Co Inc founder and former chairman Richard Schulze yesterday offered to take the electronics retailer private in a deal valued between $8.16 billion to $8.85 billion.

Schulze, who already holds a 20.1-per cent stake in the troubled company, has offered to pay between $24 to $26 a share, a premium of 36 per cent to 47 per cent to Best Buy's closing price on 3 August.

Schulze's buyout offer values the Minneapolis, Minnesota-based company between $8.16 billion to $8.85 billion, which implies that the former chairman of the company will have to come up with around $6.9 billion to buy the remaining stock.

Schulze, who was Best Buy's CEO for 36 years before becoming the chairman in 2002, resigned from the post in June after it was revealed that he knew about CEO Brian Dunn's inappropriate relationship with a female employee that "negatively impacted the work environment," and he failed to inform the company's human resources department or the board.

Schulze said in a letter to the company's board that he has wants to form a group that includes private equity firms and other executives to take the company private and is seeking permission to conduct due diligence so that he can make a more complete offer.

Under Minnesota state corporate law, Schulze requires permission from Best Buy's board to form such a group.