Shares of Kate Spade (KATE) were falling by 12.89% to $19.86 in pre-market trading on Tuesday morning, following a Reuters report suggesting the retailer is in need of more time to consider a bid made last week by luxury goods maker Coach. (COH)

By allowing the sale process to take a little longer the potential buyers can better assess Kate Spade's first quarter sales and negotiate the possible deal, sources told Reuters. Kate Spade closed at $22.80 on Monday, valuing the company at around $2.9 billion. Should Kate Spade negotiate a sale, the people Reuters spoke with believe it will be valued below that level.