Yes, he will buy the company for $22 but only if he doesn't have to pay 0.17 dividend. I talked to him today at a Holiday gas station in Richfield, MN , BBY's headquarters. He was using a 10 cents off coupon for up to 15 gal of gas. Very smart man.
Maybe, but maybe Schulze would like to see extra 11M in his own pocket vs. in the new joint private company's pocket. This may be his last chance to get those money with lower tax and maybe that is the only thing he is waiting for before making an offer.
Dividend is not the point in my opinion 11M is a lot of money but in this case it's peanut in comparison to the overall deal. I think they are not in a hurry because they feel that time is running in their favor, but that won't last forever. My bet is mid 02/13 is there deadline - i'll elaborate on that later.
Let's say you are holding 20% of the cake which you think is currently worth X and your ambition is to acquire a greater part of the cake disbursing as little cash as possible. The most efficient way to achieve this goal is to lower the purchase price of the cake Y what allows you to borrow a minimal amount of money and realize more value after the purchase. This translates into you making the cake look as disgusting as you can in order to push the other stakeholders to sell their stake for a price Y way lower than the value X that you attribute to the cake. In my opinion, this is exactly the current proposition by Schulze and co.
But the subterfuge they used to reach their goal cannot last too long cause with time the smoke will evaporate and they won't take the risk to let the market from come back and close their window of opportunity. I don't think the CFO will be able to post restructuring charges at the same level as they did on Q4 2012, and turning a $3.9 EPS before abnormal items into -2.89 EPS before XO. However creative the CFO can be for Q4 2013, It will be hard for him to use the same trick again, like any magician the CFO tricks have limitation in scope and time. So be prepared to see the restructuring charges disappear from the RTM IS soon and the illusion unveiled. My guess is they will do everything for the deal to close before FY2013 release, approximately 5/22/13 announcement 90 days before implies mid feb 2013 as last call. But other events could put them in a hurry to announce the deal, the stock bottoming and regaining some momentum, a positive december sales & revenue release 1/11/13...