Best Buy Co. Inc. is continuing talks with founder Richard Schulze about an agreement that would allow him to conduct due diligence in his effort to acquire the company, said two people with knowledge of the matter.
Best Buy initiated the discussions shortly after announcing quarterly earnings that missed analysts' estimates Tuesday, said one of the people, who asked not to be identified because the negotiations are private. The two sides may reach an agreement later this week, or talks could again break down, the person said.
The largest U.S. electronics retailer has lost 13 percent of its value this week as investors bet that Schulze's Aug. 6 proposal to buy it for as much as $9.5 billion is becoming less likely. Interim Chief Executive G. "Mike" Mikan said Tuesday on Best Buy's earnings conference call that the due diligence offer still stands.
Schulze, who holds a 21 percent stake in Best Buy, has resisted Best Buy's offer to access confidential financial information because of restrictions the company is seeking as part of such an agreement, the people familiar with the negotiations said. Richfield-based Best Buy, for example, wants to limit Schulze's ability to contact the board and management or to replace directors if the company rejects his takeover proposal, said these people.