Best Buy to Open Books for Founder

English: Logo of Best Buy, US-based retail chain (Photo credit: Wikipedia)

 Best Buy said on Monday that it has finally agreed to let its founder, Richard Schulze, take a closer look at its financial statements to help him firm up his potential takeover proposal for the electronics retailer.

The pact follows more than a week of negotiations between the two sides, a time punctuated by prickly public statements by both sides as they jockeyed over terms of a prospective agreement.

Earlier this month, Mr. Schulze proposed buying the company he founded 46 years ago for up to $8.8 billion. Best Buy, however, has been cautious, preferring at the moment to stick to a turnaround effort that will be led by its incoming chief executive, Hubert Joly. , Mr. Schulze and his potential partners and financial backers will now gain access to Best Buy’s books immediately. They will then have 60 days to present a fully financed deal.
Should Best Buy’s board reject Mr. Schulze’s proposal, he would have to wait until January to make a second offer. Company directors would then have 30 days to review the newer plan before Mr. Schulze could go directly to Best Buy’s shareholders, at either its annual investor meeting or at a special meeting that he could call with the support of 25 percent of stockholders. (He already owns a 20 percent stake.) ... Continue to read.