Best Buy Co., Inc. (NYSE:BBY) is headlining the biggest movers on the markets Monday, as the electronics reltailer is bieng sought to return to being a private company. There was a report earlier this morning that stated founder Richard Schulze3 was going to make play to buy out the company and take it private.
The news has rattled investors into a buying frenzy, as Best Buy Co., Inc. (NYSE:BBY) stock at one point in the morning soared to more than $21 a share before settling down to about $19.60, tough still an 11-percent premium on the opening price. Best Buy is the most noteworthy large-cap to make a significant move Monday, and it’s all based on Schulze’s statement that he wanted to buy out the company for about $24-$26 a share. Some anlysts have figured it would take about $2 billion in private-equity investment adn about $8 billion in debt in order to pull off the deal, but Credit Suisse expressed confidence that it can provide the financing necessary.
What might be bringing the stock back from its previous intraday highs could be the report that the board of Best Buy Co., Inc. (NYSE:BBY) may likely be less than cooperative in working with Schulze on the buyout and subsequent transition. It’s possible that $26 a share may not be enough. Billionaire hedge fund manager David Einhorn recently sold out his Best Buy position (see the billionaire’s top stock picks).
Other news in the large-cap markets is the upward mobility of Cognizant Technology Solutions Corporation (NASDAQ:CTSH), which is up 12 percent on the day to $64.75 a share after reporting earnings and revenue that beat estimates, and gave guidance for the year that was consistent with the Street’s estimates. Cognizant Technology Solutions Corporation (NASDAQ:CTSH) saw its revenue grow in North America by 24 percent over the same quarter of 2011.
On the down elevator Monday has been HCA Holdings, Inc. (NYSE:HCA), whose shares have lost nearly 8 percent of value(to less than $24.50) after its quarterly report beat on the EPS line but missed on the revenue line. The concern for investors seems to be rising costs for HCA Holdings, Inc. (NYSE:HCA), which lowered the net revenue per equivalent admission into the company’s hospitals. If the costs go up, it might mean investors might actually have to root for more sickness, not less.
The big story is the report coming out of Best Buy Co, Inc. (NYSE:BBY), and it will likely be one to follow all week as the story of possible privatization unfolds. This rise is good news for billion-dollar hedge fund investors like Steve Leonard (check out his stock picks for a $135-billion portfolio here), who had about $5.3 million invested in Best Buy stock.