Best Buy's Founder Sends Letter to Board; Asks for OK to Conduct Due Diligence

Richard Schulze, Founder and former Chairman of Best Buy Co., Inc. (NYSE: BBY), today sent a letter to the Best Buy Board of Directors requestingpermission to form a group and conduct basic due diligence so that he canpresent a fully financed offer for the company. The letter follows:August 16, 2012Board of DirectorsBest Buy Co., Inc.7601 Penn Avenue SouthRichfield, MN 55423Ladies and Gentlemen:This is a critical time for Best Buy. The decisions that you make over thenext few days and weeks may well determine the fate of this great company. Assuch, the Board has a duty to ensure it is fully informed about all availableoptions as it seeks to achieve the best outcome for Best Buy and itsshareholders.On August 6, after repeated requests to the Board to provide me with duediligence information and the consent to form a group required under Minnesotalaw, I made public my proposal to acquire all of the common stock of Best Buyfor $24.00 to $26.00 per share in cash. In response, you dismissed mycarefully considered proposal as a “highly conditional indication ofinterest.” I would have preferred to have a constructive private dialogue withthe Board, but once having made my proposal, I was required as a 13D filer tomake it public.You can easily test how real my proposal is by granting me permission to forma group and by providing basic due diligence information necessary to presenta fully financed offer and allow shareholders the opportunity to receive asubstantial cash premium for their shares.I am deeply concerned about the direction of the company and, as Best Buy'slargest shareholder, I cannot simply stand aside. I still hope to work withthe Board on a mutually beneficial transaction – but you should know that I amnot going away.All I am asking is your permission to conduct due diligence and form a groupso that I can quickly be in a position to give the Board a fully financedoffer for your consideration. My need for due diligence is limited tofinancial data and the standard corporate information necessary to securefinancing. There would be no burden on management as I do not need anypresentations to me or potential partners interested in investing with me inBest Buy. I am confident due diligence can be completed quickly.The transaction I have proposed would be financed through a combination ofprivate equity investment, my own substantial equity investment and debtfinancing. A number of leading private equity firms have informed me that theyare prepared to make significant commitments, subject to due diligence. I amprepared to roll over into this transaction at least $1 billion of my ownequity -- and potentially all of my existing stake depending on the ultimateterms of the agreements with the private equity firms regarding the newownership structure. Credit Suisse is also highly confident it can arrange thenecessary debt financing, and since August 6, a number of major banks havecontacted Credit Suisse to express their interest in participating in the debtfinancing.