If you were wondering how much of a buyout premium investors have baked into Best Buy’s (BBY) stock, the minimum figure is about two bucks.
Best Buy slumped 15% to $12 this morning after the company’s board extended the deadline for founder Richard Schulze to buy the troubled electronics retailer. Schulze is also the company’s biggest shareholder.
Analysts were taking the news as a sign that Schulze is having a hard time putting together a deal.
“Schulze Just Doesn’t Have The Cash,” reads the headline on BB&T Capital Markets’ take this morning. “We believe this extension indicates Schulze has been unable to line up the necessary equity and debt to finance a transaction,” analysts Anthony C. Chukumba and Eric Cohen wrote.
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