published Monday, August 6th, 2012

Best Buy founder offers to buy company, take it private

Best Buy’s founder Richard Schulzs wants to take the electronics retailer private by buying up all of its outstanding shares he doesn’t already own for $24 to $26 each.
Best Buy’s founder Richard Schulzs wants to take the electronics retailer private by buying up all of its outstanding shares he doesn’t already own for $24 to $26 each.
Photo by Associated Press /Chattanooga Times Free Press.

MINNEAPOLIS — Best Buy’s founder says he wants to take the electronics retailer private by buying up all of its outstanding shares he doesn’t already own for $24 to $26 each.

Best Buy shares jumped 22 percent on the news.

Richard Schulze also served as the Minneapolis-based company’s chairman until resigning in June amid a scandal involving its CEO. The offer represents a 36 percent to 47 percent premium over Best Buy’s Friday closing stock price.

Schulze is Best Buy’s largest shareholder, controlling about 20 percent of its shares.

He says he’s developed a plan to deal with the company’s challenges and has talked with private equity firms.

Schulze says he plans to finance the deal through a combination of private equity investments, about $1 billion of his own equity and debt.

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