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July 24, 2014

Best Buy gives Schulze green light to pursue buyout

Richfield-based Best Buy Co. Inc. and its founder Richard Schulze have reached an agreement that gives Schulze permission to review the company’s financials and form an investment group to finalize an official takeover bid, Forbes reports. If the initial proposal is rejected, Schulze has agreed to wait until January 2013 to pursue his plan to buy the struggling electronics giant. Schulze has 60 days to present a fully financed definitive proposal to Best Buy’s Board of Directors.

71-year-old Schulze, the retailer’s largest shareholder, has voiced an interest in making a $24 to $26 per share offer — a deal that would total close to $9 billion.

Last week, Best Buy reported its second-quarter net income fell 90 percent. The company also appointed Hubert Joly, former chief of the Carlson travel company, as its new CEO.