Dick Schulze, founder and former chairman of Best Buy, sent the chain’s board another letter today requesting permission to form a group and “conduct basic due diligence so that he can present a fully financed offer for the company” based on Minnesota state law.
The gist of the letter is just about the same as his original statement of August 6, but it had some pointed remarks in it. Here they are with the italics being inserted by yours truly:
“I am deeply concerned about the direction of the company and, as Best Buy’s largest shareholder, I cannot simply stand aside. I still hope to work with the Board on a mutually beneficial transaction – but you should know that I am not going away.”
If you’ve ever met or dealt with Dick Schulze, I think you know that his determination is a given. My gut feeling, and it is only a feeling since I am not an MBA or financial wizard, is that the odds seem heavily against him. Yet I wouldn’t ever underestimate him.
Another comment is rather ominous but, unfortunately for Best Buy shareholders, employees, vendors and customers, it is probably true: “Value is eroding every day.”
This drama continues next Tuesday, Aug. 21, when Best Buy releases its quarterly report.