PD Best Buy Remains Open as Stock Deal Hits Snag

Best Buy founder Richard Schulze has hit a snag in his effort to take over the struggling electronics seller.

According to CNN, Best Buy said Schulze rejected a deal that would have the company cooperate with his effort to gain control. Best Buy called the terms of the agreement "routine and normal".

But Schulze, in a statement of his own, said Best Buy wanted an 18-month standstill agreement, which would would prohibit him from buying Best Buy stock during that period. At the same time, Schulze and his team would get access to non-public information about the company's finances and the opportunity to make a "fully financed" proposal to the Best Buy board in 60 days.

Best Buy then shortened the proposed standstill to last until January 2013, after the holiday shopping season.

"The board proposed that Mr. Schulze, beginning in January, be allowed to take his buyout offer to shareholders," said Best Buy, in a press release. "Mr. Schulze did not accept the company proposal."

Schulze said that he and Best Buy were in the process of negotiating a shorter standstill agreement -- until the company surprised him by issuing its statement that the founder backed away from the deal.

In March, Best Buy announced plans to close 50 stores across the nation, including seven in California by the end of the year.  The Palm Desert and La Quinta locations will remain operational.

The Palm Desert store moved earlier this month to a smaller location in the Desert Crossing Center.