C = Catalyst for the Stock’s Movement:
Schulze, whose initial proposal to take the company private was rejected by the board, will submit his final plan by mid-December, after the critical holiday shopping season is well underway. In August, he said he would buy the company for $24 to $26 per share, which would value the company between $8.16 billion and $8.84 billion. However, analysts believe that Schulze’s final offer will be considerably lower than planned, as the electronics retailer’s stock price has fallen by more than 25 percent since the original offer was made. Best Buy’s shares have followed a predominantly downward trend over the last few months, and the company suspended its earnings guidance for the quarter because of its “low expectations for industry wide sales” on August 21.
Best Buy’s poor third-quarter results, which were released on November 20, revealed just how worrisome the company’s depressed sales have become. As Reuters reported, the weak results and chief executive Hubert Joly’s unspecific turnaround plan have made some Best Buy investors “more willing to consider a buyout offer from Schulze.”