Richard Schulze has filed a statement with the Securities and Exchange Commission that basically confirms that he is not going to make a new big for shares of Best Buy Co. (NYSE: BBY). The filing says that the company's new plan deserves a chance and that the company should be able to implement its plan. Thursday marked the end of a bid review period and that time has come and gone.
Best Buy shares are up 1.5% at $16.66 against a 52-week range of $11.20 to $27.95. The long and short is that Best Buy is going to likely have to fend for itself. Schulze's filing shows that no determination has been made, which to us is the telegraph that he was not able to pony up the adequate financial backing from the private equity firms to do a deal. Best Buy's market cap is over $5.6 billion, but there are too many shareholders who are buried in "long and wrong" trades from prices even much higher than what have been seen in the last year.
The full amended 13D filing SEC Filing says,
Over the course of the past several months, Mr. Schulze facilitated various offers that would have resulted in the investment of new equity into the Company by up to three leading private equity firms. In connection with such investments, it was contemplated that each private equity firm would be provided a board seat and that Mr. Schulze would nominate two directors to the Company's board of directors. In addition to their capital, Mr. Schulze believed that the private equity firms would add significant expertise, talent and experience to the Company's board of directors, which would assist the Company in returning to its position of market leadership.
In the end, the Company determined not to accept the terms offered by the private equity investors for their investment. Mr. Schulze believes, however, that the Company deserves a chance to implement its own plan. No one is more interested in the success of the Company than Mr. Schulze.
Mr. Schulze has not made any determination as to whether or not he will exercise his right to appoint his own two nominees to the Company's board of directors.
Filed under: 24/7 Wall St. Wire, Consumer Electronics, Corporate Governance, Mergers & Acquisitions, Mergers and Buy Outs, Private Equity, Retail Tagged: BBY