Best Buy Rises After Naming New CFO; Bid From Founder Expected
Shares of beaten down retailer Best Buy (NYSE: BBY) are higher on Monday after the company named retired Williams-Sonoma (NYSE: WSM) executive Sharon McCollam as its new chief financial officer, effective December 10. At last check, the stock was trading up better than 4 percent to $15.98.
A report that Best Buy founder Richard Schulze is set to release his bid for the company is also having an effect on the stock. According to reports, Schulze is wrapping up his due diligence on the company and a bid is likely forthcoming in December.
A Reuters report cited "sources familiar with the matter," and said that the bid will likely be below $8 billion. Currently, BBY has a market cap of just $5.38 billion. Reuters also reported that at least three private equity firms are considering joining the deal.
They include Apollo Global Management, TPG Capital, and Leonard Green Partners. Previously, Schulze and his team said that they may bid anywhere from $24 to $26 per share for the company.
Best Buy continues to struggle as competitors such as Amazon cut into earnings and margins. Year-to-date, the stock is down almost 32 percent and over the last 52-weeks, BBY has shed 42 percent.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.