Office Depot rejects takeover offer from Staples, but says it’s open to other types of ventures
Office Depot has rejected one other takeover try by workplace provide rival Staples, in accordance to a letter despatched Tuesday by an organization govt.
However, the mother or father firm of Office Depot, ODP, mentioned it’s open to a unique form of a deal, equivalent to promoting its retail and e-commerce companies to Staples or agreeing to a three way partnership, in accordance to the letter.
In the letter, ODP Chairman Joseph Vassalluzzo wrote {that a} deal that is not a full takeover “could be executed more efficiently and with far greater certainty and less regulatory risk than your proposal.”
“It would also help maintain competitiveness against nontraditional retailers and optimize ongoing choices for consumers,” he wrote. The letter was despatched to Stefan Kaluzny, managing director of Sycamore Partners and a board member of USR Parent, the subsidiary that owns Staples.
The rebuffed offer was first reported by The Wall Street Journal.
Shares of ODP have been down greater than 1.5% in noon buying and selling Tuesday to $45.
Staples has sought to purchase Office Depot’s mother or father firm, ODP, two other instances. Five years in the past, antitrust officers blocked a merger between the two companies and despatched shares of the 2 firms tanking.
In the most recent try, Staples proposed to buy the corporate on Jan. 11 for greater than $2 billion, or $40 a share, in accordance to the Journal.
Along with Office Depot, ODC additionally owns OfficeMax, one other chain of workplace provide shops, and CompuCom, an info know-how firm.
