Fireworks at Best Buy's meeting? Maybe a firecracker or two
- Blog Post by: Thomas Lee
- June 21, 2012 - 7:24 AM
Annual meetings are usually boring, highly scripted affairs. But Best Buy's gathering today has the makings of high drama.
Will founder Richard Schulze show up? Will he offer to take the company private? Will he demand the board of directors step down?
For one thing, I doubt Schulze, Best Buy's largest investor, will even show up. Unless Schulze marches into the meeting ready to buy Best Buy for billions of dollars, there is little for reason for the founder/ex-chairman to attend the meeting.
Taking a company private is a complex undertaking. And it was only about two weeks ago that Schulze resigned from the board to explore options for his 20 percent stake.
Since then, Schulze has hired a prominent New York lawyer and Credit Suisse, an investment bank that specialized in leveraged buy outs, to help him determine what to do next, according to sources close to the situation.
Schulze is nowhere near ready to make an offer, said one of the sources. But he is pushing ahead, slowly but surely, the source said.
And until Schulze pulls the trigger, he is not likely to break his radio silence.
But that doesn't mean nothing will happen at the meeting. Given all of Best Buy's problems, investors will finally get a chance to directly question interim CEO G. "Mike" Mikan and the board of directors about the company's uncertain future.
So I'll bring my popcorn...just in case.
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