Best Buy Stock Gets Slammed

by Christopher Freeburn | December 14, 2012 1:51 pm

[1]Investors hammered Best Buy (NYSE:BBY[2]) shares after the struggling retail chain announced that it would give its founder, Richard Schulze, more time to put together a formal bid for the company[3].

Shares of Best Buy plunged more than 15% in Friday afternoon trading after the news broke.

Schulze was facing a Sunday deadline to submit a formal offer for the big box electronics retailer. However, the company today said that he could make the offer between February 1 and February 28 of next year, CBS News noted.

The company said the extension would give Schulze time to examine its full-year financial results, and would ultimately benefit shareholders.

Media reports had indicated that a formal offer, priced between $5 billion and $6 billion, might come as early as today[4].

Schulze was ousted as company chairman in May after it emerged that he had failed to inform the board[5] about an improper relationship between former CEO Brian Dunn and a female staffer.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/04/best-buy-hell-red-630.jpg
  2. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  3. more time to put together a formal bid for the company: http://www.cbsnews.com/8301-34227_162-57559266/best-buy-shares-plummet-on-schulze-bid-extension/
  4. might come as early as today: http://investorplace.com/2012/12/a-bid-for-best-buy-may-be-imminent/
  5. that he had failed to inform the board: http://investorplace.com/2012/05/best-buy-chairman-resigns-after-ceo-inquiry/

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