UPDATE 3-Best Buy CFO departing, company to look for replacement

(Adds details of the separation agreement)

Oct 9 (Reuters) - Best Buy Co Inc's chief financialofficer, James Muehlbauer, is leaving the embattled retailerafter more than a decade, the company said on Tuesday.

Best Buy, which appointed a new chief executive in lateAugust, said it was looking for a replacement.

"Given the unique relationship between a CEO and CFO, it isnot uncommon for a new CEO to bring in his own person," saidBest Buy spokesman Matt Furman. Furman could not say whereMuehlbauer would go next.

Muehlbauer, 50, has been CFO at the company for four yearsand joined the company in 2002. He will stay through fiscal2013, which ends on Feb. 3, unless both parties agree to anearlier termination.

Muehlbauer will get a lump sum of $1.4 million, includingtwo years of his base salary, and other benefits, according to aregulatory filing detailing his separation package.

Best Buy, the world's largest consumer electronics storechain, replaced its chief executive after former CEO Brian Dunnleft abruptly due to an ethics probe.

The new CEO Hubert Joly, a Frenchman, is trying to turnaround a company whose stores are often showrooms for onlineretailers like Amazon.com Inc , as shoppers go there tocheck out products like high-definition televisions then buythem elsewhere for less.

The company's founder, former CEO and largest shareholderRichard Schulze and at least four private equity firms havebegun to look at Best Buy's books, early steps toward apotential $11 billion buyout, sources told Reuters last week.

(Reporting by Martinne Geller in New York, additional reportingby Phil Wahba; Editing by Matthew Lewis and Gunna Dickson)

((martinne.geller@thomsonreuters.com)(646 223-6023)(ReutersMessaging: martinne.geller.reuters.com@reuters.net))

Keywords: BESTBUY CFO/