Report: Schulze Readying Bid for Best Buy
Nov 12th 2012 10:19AM
Updated Nov 12th 2012 10:20AM
Best Buy (NYS: BBY) founder Richard Schulze is said to be wrapping up due diligence on the company he created, preparatory to making a "going private" bid for the company in December. A Reuters report from Friday says "sources familiar with the matter" say his bid could be below $8 billion.
Reuters reports that at least three private equity firms are considering partnering with Schulze on the bid to take Best Buy private: Apollo Global Management, TPG Capital, and Leonard Green Partners. The report credits one unnamed source with saying Cerberus Capital has apparently decided against taking part.
Best Buy shares closed Friday trading at $15.30 per share, giving the company a $5.2 billion market cap. In earlier reports, Schulze's team had floated the possibility of bidding anywhere from $24 to $26 per share for Best Buy, implying a valuation of more than $8.2 billion, exclusive of debt.
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