Best Buy shares fall on takeover bid extension

• Best Buy shares rose 16% a day earlier on reports of Schulze bid
• Struggling electronics retailer extends after holiday season will show better financials
• Most likely bidder is co-founder Richard Schulze, 20% stakeholder

NEW YORK (AP) — Best Buy (BBY) shares plunged almost 15% Friday after the struggling electronics retailer said it extended the window for co-founder Richard Schulze to make a buyout bid until after the holiday season.

At the close, Best Buy shares were down $2.07 to $12.05.

That erases nearly all of Thursday's 16% gain after a report in the Minneapolis Star Tribune that Schulze would make a bid by the end of the week. The report cited unidentified sources.

On Friday, Best Buy said Schulze can make his offer between Feb. 1 and Feb. 28, 2013.

The Minneapolis-based company said the extension is in the best interest of shareholders and gives Schulze and his investor partners time to review Best Buy's full-year financial results.

Best Buy has been struggling to maintain market share in the face of tough competition from discounters and online retailers. In its most recent third quarter, it recorded a loss due to restructuring charges and continued weak sales.

Richard Schulze, 71, founded the company in 1966 and is its largest shareholder by far with a 20% stake. He has been considering a bid or selling his stake since resigning in June, following an investigation that led to the resignation of then-CEO Brian Dunn due to an inappropriate relationship with a female staffer.