US ELECTRONICS chain Best Buy has named Hubert Joly, the former head of travel company Carlson, as its new chief executive officer yesterday, hoping to tap the acumen of the French restructuring expert in turning around companies.

Nevertheless, shares of the world’s largest electronics retailer fell 5 per cent in pre-market trading, after takeover talks with founder Richard Schulze apparently broke down over the weekend.

Best Buy said on Sunday that Mr Schulze had rejected its offer to allow him the opportunity to do due diligence and pursue his interest in taking over the company.

“It is clear to us that there is quite a bit of acrimony between Mr Schulze and the board of directors and that this distracting saga isn’t close to being finished,” RBC Capital Markets analyst Scott Ciccarelli said.

However Mr Ciccarelli and other analysts applauded the appointment of Mr Joly as permanent chief executive, as it ends a period of uncertainty and puts someone at the helm with significant experience of turning around technology companies.

“He is a little bit older, a little bit more seasoned,” said BBT Capital Markets analyst Anthony Chukumba. “He wasn’t on my radar screen, I doubt he was on anyone’s radar screen. I think this is a home run for Best Buy.”

Mr Joly, a former chief executive of privately held hospitality and travel company Carlson, succeeds interim chief executive Mike Mikan.

Mr Joly is expected to step into his role as president and chief executive in early September when his visa is secured, according to Best Buy.

Best Buy has become a showroom for Amazon.comand other online retailers, with people going to its stores to check out items like high-definition televisions, then buying them elsewhere for less.

It has posted same-store sales declines in seven of the last eight quarters. It is expected to report results for the latest quarter today.

Mr Joly led the restructuring and growth of Vivendi’s video game business – now part of Activision Blizzard – from 1999 to 2001. He also drove the turnaround of EDS – now part of Hewlett Packard – in France from 1996 to 1999, Best Buy said. – (Reuters)