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Response to Tansy_Gold (Original post)

Wed Feb 20, 2013, 09:14 AM

13. Office Depot, OfficeMax to Merge to Compete With Staples


2/20/13 Office Depot, OfficeMax to Merge to Compete With Staples

Office Depot Inc. agreed to buy OfficeMax Inc. for $1.17 billion in a bid to revive a retailer that has been losing sales to online rivals and Staples Inc., the largest U.S. office-supplies chain.

Office Depot will issue 2.69 new shares for each outstanding OfficeMax common share, according to a statement today on its website. That’s equal to $13.50 a share, based on yesterday’s closing price, a premium of about 26 percent to Feb. 15 before reports the companies were in talks to combine.

The merger will combine companies with revenue totaling about $18 billion compared with more than $24 billion in sales last year for Staples. The company may accelerate the closing or selling hundreds of stores after Starboard Value LP, an activist fund that became Office Depot’s largest shareholder in September, pushed for expense reductions.

“Consolidation is needed in an overstored and secularly declining industry,” Greg Melich, an analyst at International Strategy & Investment Group LLC in New York, wrote in a note Feb. 19. “We see two fundamental shifts that continue to hurt demand: digitization of the workplace (that is reducing the demand for traditional office products) and a shift to e- commerce.”

more...
http://www.bloomberg.com/news/2013-02-20/office-depot-officemax-to-merge-to-compete-with-staples.html?alcmpid=breakingnews

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Tansy_Gold Feb 2013 OP
Demeter Feb 2013 #1
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LineReply Office Depot, OfficeMax to Merge to Compete With Staples
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