Best Buy Continues to Rally on Going Private Speculation

Early on Monday, shares of Best Buy

rallied as much as 10%. The Minneapolis Star Tribune reported that the company's founder and former Chairman Richard Schulze was close to making an offer to take the company private. Schulze resigned early in June, leading to near instant speculation that he was planning a bid to buyout the electronics retail giant. Schulze currently owns roughly 21% of outstanding shares. If Schulze makes a bid, shareholders could see further appreciation. However, as this news has been speculated on for some time, the upside could be limited. If reports prove untrue, significant downside might be seen. Best Buy has seen its share of struggles in recent months. CEO Brian Dunn resigned earlier in the year after it was reveled that he had an inappropriate relationship with a coworker. Many also question the company's ability to continue to survive in the face of increased online competition. Shares of Best Buy traded near $22.12 on Monday afternoon.