Aug. 7 (Bloomberg) — Best Buy Co. founder Richard Schulze may beoffering the best option for shareholders, even as traders questionhis ability to finance the fourth-largest U.S. retail takeover inhistory.

Schulze, who remains the electronics chain's largest investorafter stepping down as chairman in June, sent a letter to the boardyesterday with an acquisition proposal of $24 to $26 a share,valuing Best Buy at as much as $9.5 billion including net debt.Even at an earnings multiple that's the cheapest on record in theU.S. industry, the bid is as much as 40 percent higher than thestock's 20-day price, topping the group average, according to datacompiled by Bloomberg.

While Best Buy is trading 17 percent below the low end of theoffer because Schulze didn't name private-equity partners anddoesn't yet have committed financing, the 71-year-old saysMinnesota law requires he get the board's permission to form abidding group with buyout firms and executives. If Credit SuisseGroup AG's confidence in raising debt leads to full financing, thedeal could provide a 14 percent bigger gain for shareholders thananalysts project Best Buy will generate on its own in the next yearas it struggles to compete with online retailers.