Best Buy negotiations breaks down
SANTA FE, Argentina - The Associated PressNegotiations between Best Buy founder Richard Schulze and the company’s board over his bid to take full control of the firm have collapsed, with each side accusing the other of derailing the deal.
Schulze said yesterday he was “disappointed and surprised by the Best Buy board’s abrupt termination of our discussions” and rejected the board’s proposal for a year-and-a-half waiting period before any major initiatives.
“The board initially proposed an 18-month standstill, which was completely unacceptable in light of the fact that urgent change is needed at Best Buy and value is eroding further every day that change is not affected.”
“We were in the process of negotiating an acceptable standstill period when, without notice to me or to any of my advisors, the board issued its announcement. I am shocked by this course of action but as the largest shareholder of Best Buy, I remain hopeful that the board will engage in good faith discussions with us.”
The board of the retailer said late yesterday that it had presented a proposal to allow access to its non-public information in return for “certain protections” for shareholders, but that Schulze had declined the offer.