by Christopher Freeburn | December 14, 2012 1:51 pm
Investors hammered Best Buy (NYSE:BBY) 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.
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.
Schulze was ousted as company chairman in May after it emerged that he had failed to inform the board about an improper relationship between former CEO Brian Dunn and a female staffer.
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