Citigroup has published a research report on Best Buy BBY following the board of directors' decision to reach an agreement with founder and former CEO Richard Schulze.
In the report, Citigroup wrote, "This morning, BBY announced an agreement has been reached between the Board and Dick Schulze, which will allow Schulze to form an investment group with private equity sponsors and granted due diligence access to non-public company information under a waiver of Minnesota state law. Under the agreement, Mr. Schulze will have an opportunity to propose a fully financed definitive proposal within 60 days after the commencement of the due diligence period. However, in the event the proposal is rejected, Mr. Schulze
would not be able to submit a second proposal until after Jan. 2013. If the second proposal proves unsuccessful, Mr. Schulze agreed not to pursue the acquisition until after the expiration of the 1 year agreement."
Citigroup maintained its Neutral rating and $18 price target on Best Buy, which is currently trading up about 5.66 percent in Monday trading.
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