Best Buy investors are getting their nerve back.
Shares of the struggling electronics chain surged $1.94, or 16 percent, to close at $14.12 yesterday on a report that founder Richard Schulze is likely to make a takeover bid by the end of the week.
“Schulze will submit a formal proposal to the board of directors before a ‘hard’ deadline of Sunday,” the Minneapolis Star-Tribune reported, citing an unnamed source.
Nevertheless, sources close to the situation said it’s difficult to make a definitive call on whether a bid is imminent. Schulze has been locked in talks with private-equity firms and lenders as he looks to finance an offer worth north of $6 billion.
Reps for Best Buy and Schulze declined to comment.
According to one source, “Best Buy expects to receive an offer,” although an announcement is expected to come from Schulze’s camp rather than Best Buy.
“They don’t want to make it seem like they’re shopping themselves,” the source said of the retail chain, which lately has softened its stance since rebuffing an approach from Schulze earlier this fall.
Another source, however, held out the possibility that Schulze will ask for a second monthlong extension when the current one expires. Schulze was granted his first extension in mid-November, following an initial period of 60 days to conduct due diligence on Best Buy’s books.
In September, Schulze offered $24 to $26 a share for the big-box retailer, valuing it at as much as $8.5 billion. But the shares have since gotten hammered amid disappointing quarterly results and a lackluster holiday outlook.
Now, investors are anticipating an initial bid in the $17 to $18 range.
“At this point, a deal at $20 would be a nice outcome,” one shareholder told The Post.