Shares of the troubled electronics retailer Best Buy (BBY, Fortune 500) cratered Friday morning, after its board of directors gave founder Richard Schulze more time to shore up financing for his buyout bid.
In late August, Best Buy’s board gave Schulze a Dec. 16 deadline to come up with a reasonable offer. The two sides have now agreed to push the deadline for a fully-financed bid to Feb. 28 in order to give Schulze and potential private equity backers time to see how Best Buy fares during the holiday season.
“Both parties believe that allowing Mr. Schulze to bring his offer after the holiday season and fiscal year end is in the best interests of shareholders,” the company said in a statement. Once Shulze makes his offer, Best Buy’s board will have 30 days to review it.
Best Buy’s stock dropped 15% Friday, a day after rallying 16% on reports that a bid in the range of $5 billion to $6 billion was imminent.
Now investors are wondering whether Schulze can actually line up private equity sponsors willing to back a bid.
“To fear the world US has led for the better part of a century, abandon the ideals we have advanced around the globe and refuse the obligations of international leadership… for the sake of some half-baked, spurious nationalism cooked up by people who would rather find scapegoats than solving problems is unpatriotic. “
-US Senator John McCain(At National Constitution Centre in Philadelphia)
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