Report: Schulze Readying Bid for Best Buy

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Best Buy (NYS: BBY) founder Richard Schulze is said to be wrapping up due diligence on the company he created, preparatory to making a "going private" bid for the company in December. A Reuters report from Friday says "sources familiar with the matter" say his bid could be below $8 billion.

Reuters reports that at least three private equity firms are considering partnering with Schulze on the bid to take Best Buy private: Apollo Global Management, TPG Capital, and Leonard Green Partners. The report credits one unnamed source with saying Cerberus Capital has apparently decided against taking part.

Best Buy shares closed Friday trading at $15.30 per share, giving the company a $5.2 billion market cap. In earlier reports, Schulze's team had floated the possibility of bidding anywhere from $24 to $26 per share for Best Buy, implying a valuation of more than $8.2 billion, exclusive of debt.

The article Report: Schulze Readying Bid for Best Buy originally appeared on Fool.com.

Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool owns shares of Best Buy. Motley Fool newsletter services recommend Best Buy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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