Shares of Albertsons Inc. tumbled 12 percent Friday, the biggest drop in 2 1/2 years, after the grocery chain abandoned talks to sell the company.

Negotiations with a group of investors including Supervalu Inc. and CVS Corp. concluded because "we did not get a bid we could accept," Albertsons spokeswoman Shannon Bennett said late Thursday. The company said it is in discussions about selling some assets.

Albertsons is losing market share to Wal-Mart Stores Inc. after the discounter expanded to more than 1,000 supercenters that offer low-priced groceries. Albertsons may sell underperforming stores to improve profit at the company's remaining operations.

"The shareholders are giving this a huge Bronx cheer," said David Dietze, president of Point View Financial Services, based in Summit, N.J., which manages about $100 million, including Albertsons shares. "Shareholders are voting today in the market."

Shares of Boise-based Albertsons dropped $2.74, or 11.8 percent, to close at $20.54 Friday on the New York Stock Exchange, falling below the price the stock was trading at before the company put itself up for sale on Sept. 2.

"We will no longer be focusing on the sale of the company," Albertsons Chief Executive Officer Lawrence Johnston told the Idaho Statesman newspaper. "We plan to continue to grow our profitable grocery business, create a more compelling shopping experience and grow our free-standing drugstore business."

JPMorgan Chase & Co. analyst Stephen Chick Friday downgraded the stock to "underweight" from "neutral," and BB&T Capital analyst Andrew Wolf cut his rating to "hold" from "buy."

A group including Supervalu, the owner of Save-A-Lot and Shop 'n Save stores, agreed with Albertsons to end acquisition talks. CVS, the No. 2 U.S. drugstore chain, ended discussions to buy Albertsons' Sav-on and Osco drugstores, the companies said in statements Thursday.

Supervalu spokeswoman Haley Meyer declined to comment.

"I think they are just middling on price, and they will end up with a dollar more and it will get done in a week," said Gary Giblen, head of research at Brean Murray & Co. in New York. "I don't think they have any intention of doing anything, but trying to shake more money out of the consortium. This is just a colossal negotiating ploy."

The New York Times reported Thursday that Albertsons' board rejected a $9.6 billion takeover offer from investors including CVS, citing unidentified people close to the negotiations.

"I think the company is either broken up or rationalized into a smaller, more profitable and efficient company in the markets where it can excel," said Redwood Technimentals Research analyst Joseph Phillips, who has a "buy" rating on the stock and is based in New York.