To deal or not to deal
- August 6, 2012 - 9:30 PM
Best Buy Co. shareholders may get to consider a purchase offer from company founder Richard Schulze.
PROS of accepting the offer
•$24 to $26 a share represents a 20 to 30 percent premium over Monday's closing price of $19.99.
•Investors can receive cash now vs. waiting for the struggling company to fix itself.
•Schulze could eventually boost his offer close to $30 a share.
•The company may continue to struggle, and the stock price could fall further.
CONS of accepting the offer
• Investors don't know how Schulze will fund the deal.
•Best Buy has yet to release its growth plan.
•The company has not named a permanent CEO. A new CEO could inspire confidence in a long-term investment.
•The company commands strong assets that eventually could lift its stock price, including $2 billion in cash and strong growth in China.
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