Best Buy (BBY) May Accept Markedly Lower Bid From Founder Schulze

November 19, 2012 7:51 AM EST
Best Buy (NYSE: BBY) is ticking higher amid chatter that its Board might be open to a lower bid from its founder.

Amid a pretty dramatic drop last Friday, news out Monday has Best Buy potentially willing to accept a bid of $20 per share from Richard Schulze. The number is lower than expectations of a $24 to $26 bid reported a few months ago.

Sources told the NY Post that Board members have been meeting with Schulze about a possible buyout and newly-appointed CEO Hubert Joly agrees, saying it would be "a good outcome."

Total price on the deal would be about $6.7 billion, from prior expectations of $8.0 billion.

Ahead of the bell Tuesday, Best Buy is expected to report third-quarter results for its fiscal 2013 year. EPS is expected to show a sequential drop of 8 cents per share and be down from 47 cents in the same period last year.

Shares closed at $13.75 last Friday, meaning a $20 per share bid would represent a 45 percent premium. The stock is down about 40 percent in 2012.

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