Best Buy (BBY) Founder Schulze Struggles to Finance Proposed Buyout Offer

Best Buy Co. (NYSE: BBY) shares are slightly weaker Monday morning as the intentions of founder Richard Schulze to takeover the big box retailer appear to be harder to execute.

According to the NY Post, Schulze is having a difficult time lining-up financing for its proposed $9 billion buyout of Best Buy. Schulze would need about $7 billion in debt financing for the acquisition, though nothing is firm yet.

The Post cited sources in saying the Schulze and his advisor, Credit Suisse, don't have private equity backing on the deal. Aside from PE, sources said Schulze might turn to banks for financing and banks might agree to it due to junk debt markets being on fire right now.

Schulze made a non-binding bid for Best Buy at $24 to $26 per share in August. Recent news has Schulze receiving due diligence rights.

Best Buy is trading about 0.5 percent lower in the early session.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nordstrom family weighing taking retailer private - WSJ
• 23andMe (ME) stock jumps as CEO plans to take company private
• Biden Says 'Guaranteed' He'll Keep US Steel (X) Domestic - Bloomberg