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Pre-Market Primer: Best Buy Seeks Buyer to Go Private


The struggling electronics retailer is looking for $26 per share to take the company public.

MINYANVILLE ORIGINAL Stock futures are higher today, extending the rally sparked by last week's better-than-expected jobs report.

Dow (^DJI) futures rose 0.10% to 13,068.00, S&P 500 (SPY) futures gained 0.21% to 1,391.90, and Nasdaq (^IXIC) futures climbed 0.45% to 2,683.00.

Oil futures trimmed Friday's gains by 0.22% to $91.20/barrel for West Texas Intermediate crude.

European authorities have concluded that Greece is making progress in cutting its budgets. Greece's new government has made 11.5 billion euros in cuts. Inspectors from the European Central Bank, European Commission, and International Monetary Fund will return in September to determine whether Greece is continuing to make the fiscal adjustments necessary for aid.

Best Buy (BBY) founder Richard Schulze confirmed that he is seeking an investor willing to take the electronics company private. The company is offering $26 per share to buy the struggling retailer, far more than the $17.64 per share price that the stock closed at on Friday. Shares surged 21.88% to $21.59 this morning.

Knight Capital (KCG), the market maker and electronic trade executor that made millions of erroneous trades due to a computer error last Wednesday, will avoid bankruptcy. Blackstone Group (BX), TD Ameritrade (AMTD), Jefferies Group (JEF), Stiefel Nicolaus (SF), and Getco LLC will give Knight a $400 million lifeline -- a sum greater than the company's market capitalization -- in the form of controvertible preferred stock. The consortium will own about three-quarters of Knight after the conversion. In the pre-market, shares of Knight Capital fell by 31% to $2.80, a 72% drop from the $10.33 closing price before the trading debacle on Wednesday.

MasterCard (MA) shares advanced in the pre-market on news that the credit card company is appealing a European ruling that its fees for cross-border payments violate antitrust rules.

Twitter: @vincent_trivett
No positions in stocks mentioned.
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