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August 23, 2014

Schulze rejects condition of due diligence deal

Best Buy and its founder Richard Schulze continue to spar over Schulze’s attempt to take the struggling Richfield-based electronics retailer private. The Star Tribune reports Schulze, Best Buy’s largest shareholder with a 20% stake, rejected a proposal from the company’s board of directors over the weekend. Best Buy says it offered to show Schulze the company’s financial data in exchange for delaying any takeover attempt until 2013, should the board reject his bid.

“The board showed great flexibility in the details around how an agreement with Mr. Schulze could be implemented so as not to limit his ability to make a definitive proposal for the company that was in the best interest of the shareholders,” according to Sunday’s statement from Best Buy.

“I am disappointed and surprised by the Best Buy board’s abrupt termination of our discussions,” Schulze said in a statement released on Monday.

Earlier this month, Schulze offered $24 to $26 per share — which values the company at nearly $9 billion. He stepped down from the board of directors in June following an internal investigation involving former CEO Brian Dunn.

Schulze also issued a statement in response to Best Buy’s announcement that it has named Hubert Joly as president and chief executive officer on Monday.