Shares rose as much as 10 percent as the retailer's ex-chairman is rumored to be close to making an offer to buy business he founded.

Best Buy stock shot up Monday on heightened speculation that founder and former chairman Richard Schulze is close to making a buyout offer for the company.

The Richfield-based retailer's stock rose as much as 10 percent in early trading and held onto a 6 percent gain on the day, to close at $22.20 a share, up $1.24.

"There's just a lot of folks that are getting a little more optimistic that perhaps Schulze is going to find some interested partners to pair up and buy the thing," said Matt Arnold, an analyst with Edward Jones in St. Louis.

Shares in Best Buy, which have faced increased pressure from Internet rivals such as Amazon, fell as much as 23 percent this year, hitting bottom in May at $18.02 a share after CEO Brian Dunn resigned. Schulze lost the chairman title after a board committee determined he failed to inform the full board about allegations that Dunn had been engaged in an improper relationship with a female employee.

Schulze resigned from the board in June and said he was exploring options for his ownership stake.

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