6 August 2012 Last updated at 17:06

Best Buy founder in takeover offer

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Best Buy Co. Inc.

Last Updated at 24 Jul 2014, 16:01 ET *Chart shows local time

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The founder and former chairman of US electronics retailer Best Buy has offered to buy the struggling retailer for $8.8bn (£5.66bn).

Richard Schulze owns 20% of Best Buy and offered to buy the shares he does not own for between $24 and $26 per share, a premium of as much as 47% to Friday's closing share price.

Shares in the retailer surged 12.9%.

Best Buy described it as an "unsolicited" and "highly conditional" offer.

The firm, which has been squeezed by online competitors, made a loss of $1.23bn in the year to March, compared with a gain of $1.28bn the previous year.

In a statment it said: "[The] Board of Directors will evaluate this proposal carefully and will, as always, pursue the best course for its shareholders."

'Moment of truth'

"There is no question that now is the moment of truth for Best Buy and that immediate and substantial changes are needed for the company to return to its market-leading ways," Mr Schulze said.

Richard Schulze resigned from Best Buy in April

"It is my strong belief that Best Buy's best chance for renewed success is to implement with urgency the necessary changes as a private company."

Chief executive Brian Dunn resigned in April, citing the firm's poor results.

Mr Schulze left in May, after it was found he knew Mr Dunn was having an affair with a female employee but did not disclose it to the audit committee.

Its inquiry found Mr Schulze acted inappropriately when he found out about the relationship.

Close personal relationships are against company policy.

Mr Schulze founded Best Buy in 1966 and it grew to to be the US's biggest consumer electronics retailer.

It tried to enter the UK market, but pulled out last year, selling some of its stores to Morrisons.