Schulze Moves To Take Best Buy Private
Monday August 6th, 2012 - 11:00AM
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Founder and former chairman Richard Schulze, who resigned his position at the company recently over a scandal involving past CEO Brian Dunn, is making a bid to take Best Buy Co., Inc. private. Best Buy today acknowledged that the company’s board of directors had received a letter requesting due diligence and outlining Schulze’s unsolicited, conditional interest in acquiring all of its outstanding shares that he does not already own.
The per-share price Schulze proposed was $24 to $26.
Best Buy said its board would review Schulze’s letter and consider it, consistent with its fiduciary duties and in consultation with its financial advisors, Goldman, Sachs & Co. and J.P. Morgan, and its legal advisor, Simpson Thacher & Bartlett LLP.
In May, Schulze stepped down from his chairman’s role and was replaced by director Hatim Tyabji effective June 21. The change in leadership occurred as Best Buy released the results of an investigation into personal conduct allegations involving former CEO Dunn, who resigned in April. The investigation concluded that Dunn violated company policy by engaging in an extremely close personal relationship with a female employee that negatively impacted the work environment.
In addition, the investigation determined that the board chairman acted inappropriately when he failed to bring the matter to its audit committee in December 2011 when the allegations were first raised with him.
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