Best Buy's founder allowed to pursue buyout

In this Thursday, June 21, 2012, file photo, customers walk in and out of Best Buy in Danvers, Mass. Best Buy Co. is reporting Monday, Aug. 21, 2012, a 90 percent drop in net income during the second quarter, dragged down by restructuring charges and weak sales. The company also withdrew its earnings guidance for the year.(AP Photo/Elise Amendola)
AP Photo/Elise Amendola

(AP) NEW YORK - Best Buy Co. Inc. (BBY) and its founder and former chairman Richard Schulze say they have reached an agreement that will allow Schulze to pursue his plan to buy the nation's largest consumer electronics chain.

The news sent Best Buy shares up more than 5 percent to $18.23 per share in morning trading Monday.

The company said the agreement will allow Schulze to form an investment group with private equity sponsors to make the bid. He already owns 20 percent of the company's stock.

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Earlier this month, Schulze suggested he could pay $24 to $26 per share for the chain. Best Buy had said it was considering the overture. The talks stalled last week,

Best Buy says the agreement establishes a non-exclusive orderly process for a bid while protecting the interests of all shareholders. Schulze says the agreement will allow him to examine the company's books in detail.