Sun Aug 19, 2012 9:34pm EDT
Aug 19 (Reuters) - Best Buy Co Inc : * Offers due diligence plan to richard schulze; schulze declines * Says board authorized its advisers to initiate discussions with mr. schulze * Says board proposal would have provided a waiver of minnesota law in order to
provide mr. schulze the ability to work with his private equity partners * Says board proposal would have provided due diligence access for mr. schulze
to the company's non-public information * Says board proposal would have provided due diligence access for mr.
schulze's private equity partners * Says board proposal would have provided due diligence access for schulze's
advisers and debt-financing sources * Says board proposal would have provided an opportunity to bring forward a
fully financed proposal within 60 days * Says board endorsed declassification and established an independent search
process for a permanent chief executive officer * Says board proposed that schulze be allowed to take his buyout offer to
shareholders beginning in January * Says schulze declined to participate
Much better information here:
Under the terms of the proposed agreement, Best Buy said, the board would have waived a provision of Minnesota corporate law that would allow Mr. Schulze to formalize a group of partners that would support any deal. It would also have allowed the company founder to bring forward a fully financed deal within 60 days.
And if the board declined to take Mr. Schulze up on his offer, he was free to take any offer directly to Best Buy’s shareholders after Jan 1.
It's easy to see why Schulze would refuse to accept such a deal. The BOD is nuts.
HAHA....wall st. fooled the longs again....absolute no bid in stock tomorrow. My prediction is under $18 by end of day tomorrow. Schulze can't do it in 60 days....
Expect another BS retort by Schulze. This is just like LEAP except LEAP managed to hang on to the rumored buyer for 3 months...stock went from $6 to $10 now back at $6. BBY $17 to $21 now heading back to $17..
"Expect another BS retort by Schulze"
Absolutely. If it doesn't happen before tomorrow's open, longs are in trouble.
"Best Buy said it asked Schulze to agree to "certain protections for Best Buy and its shareholders, with the goal of limiting outside distractions", in exchange for opening its books. It did not detail the conditions."
Schulze will disclose what those conditions are. The BOD is being ridiculous. Protections? What protections? Limiting outside distractions? Huh? You mean like a tanking stock price isn't a distraction? lol. Why should Schulze agree to something that would tie his hands. I disagree with you. I think he can come up with the money - but he needs the cooperation of the BOD. What a dumb situation.
This BOD makes me sick. I'm not currently long BBY, so I have no stake for the time being. But they have a lot of nerve insisting that they are looking after shareholders. They are looking after themselves. When did the BOD take over BBY? I think it's time for shareholders to sue the BOD.