Best Buy Rumors Ignite
Best Buy Co. Inc. (NYSE: BBY) has been a rumored buyout target for some time now that its woes began to go into overdrive. When the Chairman and Founder Richard Schulze announced that he was leaving and that he would…
Best Buy Co. Inc. (NYSE: BBY) has been a rumored buyout target for some time now that its woes began to go into overdrive. When the Chairman and Founder Richard Schulze announced that he was leaving and that he would explore options for his stake, it meant either that he was going to make a run for the entire company or that he was going to just ditch the problems and take a ‘cut and run’ sale strategy for his stake.
The Wall Street Journal has reported that Schulze is in fact exploring a buyout of the electronics retail giant. The ‘sources’ even reported that Schulze is working with bankers at Credit Suisse. The talks are also said to be in the early stages and it even was reported that Schulze could still dump his stake in Best Buy.
This is the sort of thing that drives investors nuts. A stake sale and/or a buyout have both been rumored and discussed in depth. We would advise investors and traders that today could likely be considered aggressive reporting of a re-rumor or at least a more targeted reporting of two possibilities with more finite information.
Best Buy shares are up 6.5% at $19.72 but we have seen a high print of $21.50 on the day during the initial volume spike.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.