Schulze's Best Buy seen bid in Dec, below $8 bn range
Schulze has done most of his due diligence on Best Buy and has formed a business plan to turn around the world's largest consumer electronics chain, with his efforts now focused on securing financing commitments, the sources said.
At least three private equity firms - Apollo Global Management LLC, TPG Capital LP and Leonard Green & Partners LP - are considering joining Schulze in the bid, the sources said. Cerberus Capital Management LP, which was among the buyout firms that weighed joining the bidding group, is no longer working on the deal, one of the four sources said.
The sources declined to be identified because the information is not public.
Schulze said in August he could buy Best Buy for $24 to $26 per share, valuing the deal between $8.16 billion and $8.84 billion and if debt is included, as much as $10.9 billion.
But Best Buy's shares have since fallen 24 percent to trade around $15.
While a final decision on the offer price has not been made, the drop in shares has raised the likelihood that Schulze's bid could be below $24 per share, th e sources said.
Schulze is expected to take a 30-day extension to mid-December for submitting a final proposal
Be the first to comment.