Best Buy (BBY), Schulze Said to Break-Off Talks...For Now
According to reports out Friday, Best Buy ended discussions with Schulze over a potential deal where Schulze and a group of buyout firms were proposing to take a minority stake in the retailer in exchange for three board seats. That means that Schulze won't be able to execute the buyout he had been planning for nearly a year.
Sources said Schulze might come up with another proposal, though specific details weren't disclosed.
The private equity firms were willing to invest anywhere from $400 million up to $700 million for a stake, which didn't include Schulze's personal holdings. Schulze still holds a 20 percent stake in Best Buy and will be able to nominate three to the Board, though Best Buy will ultimately select two of the candidates.
Since stepping down as Chairman last May, Schulze said he was willing to take the company private in a deal that valued Best Buy at $8 billion. He received two extensions over that period, with the latest causing Best Buy to postpone its quarterly earnings release.
Shares of Best Buy are down about 0.7 percent in early trading.