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

November 19, 2012 7:51 AM EST Send to a Friend
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.


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

You May Also Be Interested In





Related Categories

Mergers and Acquisitions, Rumors, Trader Talk

Add Your Comment