The chances of a private equity-backed buyout of embattled consumer electronics giant Best Buy by its founder billionaire investor Richard Schulze are reportedly dwindling.
Schulze, pictured, is not moving forward to secure the financing needed to bid for the business according to dealReporter.
The report, which cited anonymous sources familiar with the matter, said any deal wouldrequire the backing of lenders and financial sponsors and noted that Schulze has until the end of the month to make an offer.
Schulze has been considering acquiring the company and taking it private or finding a private equity firm to buy a minority stake.
One of the sources interviewed by dealReporter questioned whether it would make sense for Schulze to opt for another minority stake over a take-private deal.
Schulze has already secured two extensions from Best Buy to give him more time to secure financing from banks, which is something the Wall Street Journal said he has had difficulty with.
The 71-year-old began due diligence on the company at the beginning of October ahead of a buyout that some analysts claimed could reach $11bn with debt.
Apollo Global Management, TPG Capital Leonard Green & Partners and Cerberus Capital Management have all been linked with Schulze’s potential buyout of the company.
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