A PYMNTS Company

US: Investment firm challenges Staples leadership in push for a merger

By  |  January 20, 2015

The investment firm Starboard Value is still trying to push Staples into buying its rival company Office Depot. In Starboards latest move, people briefed on the matter said the hedge fund plans to release a public letter urging Staples to pursue a takeover and if Staples continues to refuse Starboards will threaten to seek a fight for representation on the board. The hedge fund claims that the merger is necessary if Staples want to continue to compete against Walmart and Amazon.com.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Staples stock has risen more than 50 percent since September and roughly 17 percent since it was revealed that Starboard had purchased shares of the company. The forthcoming letter claims that the higher stock prices give Staples an excellent currency to purchase Office Depot. Starboard is going so far as to challenge Staples top leadership saying in the letter, “If it becomes clear to us that you have no intention of seriously pursuing this unique and highly attractive opportunity, it would be a clear sign that significant leadership change is needed at Staples.”

    Full Content: DealBook

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.