Investment law firm looking into Best Buy matter

NEW YORK — Harwood Feffer LLP, a law firm that represents investors and investment groups, announced that it is investigating potential claims against the board of directors of Best Buy, concerning whether the board is fulfilling its fiduciary duties to shareholders in connection with an offer from the company's founder and former CEO, Richard Schulze, to take the company private.

On Monday, it was reported that Schulze is offering to purchase the company for between $24-26 per share, which is well below its 52-week high of $28.52 per share and values the company at approximately $8 billion. The offer translates to only three times EBITDA in an industry that generally commands a multiple of no less than eight times EBITDA, or less than half the amount another suitor might offer to purchase the company.

The firm is concerned whether the Best Buy board of directors is fulfilling its fiduciary duties to shareholders, maximizing the value of the company, disclosing all material benefits and costs, and obtaining full and fair consideration for company shareholders.