Reuters: Global Markets: Best Buy up on focus on founder's likely buyout offer

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Best Buy up on focus on founder's likely buyout offer Jul 2nd 2012, 16:52 Tweet Share this Email Print Related News Best Buy vows to slim down, tackle "showrooming" Thu, Jun 21 2012 Wall Street ends best week of year as aid for Spain's banks seen near Fri, Jun 8 2012 Best Buy founder resigns, puts large stake in play Thu, Jun 7 2012 Analysis & Opinion What happens to Tribune after bankruptcy? Related Topics Deals » Global Deals Review: 2011 Q3 » Global Deals Review: 2011 Q2 » Global Deals Review » Hot Stocks » Asian Markets » Inflows Outflows » Best Buy logo is seen at a Best Buy store in Toronto in this April 19, 2011 file photo. Credit: Reuters/Mark Blinch/Files Mon Jul 2, 2012 12:52pm EDT (Reuters) - Shares of electronics dealer Best Buy Co Inc (BBY.N) rose more than 10 percent on Monday morning on growing talk that founder Richard Schulze was planning a buyout offer for the firm in which he still holds a 20 percent stake. Best Buy shares were the top percentage gainer in the Standard & Poor's 500 index, up $2.05 at $23.01 at midday on Monday after rising as high as $23.56. There appeared to be little fresh news on a potential bid to spur the move. Schulze abruptly resigned from the company's board in June and said he was exploring options for his ownership stake. He lost his chairman title after a probe by a board committee found that he had failed to tell the board about allegations that former CEO Brian Dunn had engaged in an improper relationship with a female employee. Sources told Reuters last week that Schulze was working with banks, including Credit Suisse (CSGN.VX), to explore a potential private takeover of the world's largest electronics retailer. The Minneapolis Star Tribune first reported that Schulze was working with Credit Suisse. Credit Suisse declined to comment on Monday. Schulze could not be reached for comment. Best Buy did not immediately return a call seeking comment, Investors could be looking for a trade into what they may consider a short-term "win-win" scenario, where either Schulze makes a buyout offer or the company presents an aggressive turnaround plan, said Brian Sozzi, chief equities analyst at NBG Productions, in New York. But Sozzi also said the company was going to take "a lot of work" to turn around and questioned whether Schulze would be able to find financing for a bid. The company, a bellwether for the consumer electronics industry, has posted declines in same-store sales in seven of the last eight quarters. It has also been criticized for being too slow to react to a changing retail world, where some shoppers use Best Buy as a "showroom" to try out electronics and then buy the same items at lower prices online. One source told Reuters last week that Schulze may be waiting for the company, under interim CEO Mike Mikan, to unveil a turnaround strategy in September, though another source said that Schulze could act sooner if he lines up financing for a deal. (Reporting by Brad Dorfman; Editing by Jan Paschal) Global Deals Review: 2011 Q3 Global Deals Review: 2011 Q2 Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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