Fri, Jun. 17, 7:39 AM
Wed, Jun. 15, 9:24 AM
Tue, May 17, 10:25 AM
- Office Depot (ODP -7.4%) is sharply lower after officially announcing that merger plans with Staples are being abandoned.
- The next step forward for the company is a strategic review of various capital structures and shareholder return alternatives. Bain has been hired to help with the process.
- A $1.2B credit facility was extended for another five years as another post-Staples adjustment.
- Shares of ODP set a new 52-week low of $3.18 today.
- Previously: Office Depot lays out plans after ending Staples merger (May 17)
Tue, May 17, 2:38 AM
- After ending its proposed merger with Staples (NASDAQ:SPLS), Office Depot (NASDAQ:ODP) is considering selling some of its European operations, making additional acquisitions and increasing markets like break room and cleaning supplies.
- "We fully understand the future success of Office Depot will require bold new action," CEO Roland Smith said during an investor conference.
- The company will also receive $250M in cash this week as a breakup fee from Staples.
Wed, May 11, 12:49 PM
Wed, May 11, 10:35 AM
- Electronics store stocks are weaker after the merger between Office Depot (ODP -38.9%) and Staples (SPLS -16.7%) is scuttled.
- Best Buy (BBY -3.4%), Conn's (CONN -6%), and hhgregg (HGG -4.4%) were expected to see at least a marginal impact from a consolidated ODP-SPLS on the view that stores would be closed in certain markets. All three companies still have to spill Q1 numbers which has investors edgy.
- Also trading lower is GameStop (GME -4.1%) which may not sell office supplies but is being caught up in the general anxiety over U.S. consumer spending.
- Previously: Responding to injunction, Office Depot and Staples call off $6.3B deal (May 10)
Wed, May 11, 9:12 AM
Tue, May 10, 7:09 PM
- In a quick response after news broke of a preliminary injunction blocking a merger between Office Depot (NASDAQ:ODP) and Staples (NASDAQ:SPLS), Office Depot says it won't appeal the ruling.
- That means the two will terminate their merger effective May 16.
- “While we are respectful of the Court’s decision to grant the FTC’s request for a preliminary injunction to prevent our merger with Staples, we are disappointed by this outcome and strongly believe that a merger would have benefited all of our customers in the long term," said Office Depot CEO Roland Smith.
- "We do not intend to appeal the Court’s decision and the two companies plan to terminate the merger agreement effective May 16, 2016."
- Smith added that after the formal deal termination, Office Depot would host an investor call May 16 to "discuss next steps in our go-forward strategy."
- After-hours trading was halted due to volatility with Office Depot down 26.3% and Staples down 10.1%.
- Updated 7:19 p.m.: Staples adds its statement. It will pay Office Depot a $250M break-up fee, and terminate its plan to sell $550M in large corporate contract business to Essendant. It will increase focus on North America midmarket customers, explore strategic alternatives for Europe, and launch a $300M cost-cutting plan.
Tue, May 10, 6:44 PM
- Office Depot (NASDAQ:ODP) has nosedived, -26.3% after hours, and Staples (NASDAQ:SPLS) down 5.4%, as a District Court judge issues a preliminary injunction blocking their $6.3B merger, according to Reuters.
- Options traders were ready for some volatility as they awaited today's ruling, on whether the court would grant a request from the FTC to hold off on the deal until an administrative judge could review it.
- While this is a preliminary injunction, any drawn-out litigation could end up killing a deal.
- Trading in the shares has been halted at those marks.
- Updated 6:55 p.m.: It doesn't look good for the buyout, since Staples CEO Ron Sargent had said in March he would likely scrap the plan if Judge Emmet Sullivan granted this preliminary injunction.
Tue, May 10, 1:26 PM
- The judge in the case pitting the FTC against merger partners Office Depot (ODP -3.2%) and Staples (SPLS +0.6%) is expected to announce his decision in the case sometime after 4:30 p.m. ET today.
- Shares of both companies are up more than 20% over the last few months amid some early positive signs that the judge is favorable to allowing the office supply store combination to move forward.
Mon, May 9, 5:40 PM
Tue, Apr. 26, 1:29 PM
- Office Depot (ODP -2.3%) says the extended regulatory process ahead of its merger with Staples is having a "substantial disruptive" impact on business levels.
- Same-store sales in the North American retail division were down 1%.
- Adjusted operating income rate fell 30 bps to 3.2% of sales during the quarter.
- On the issue of the FTC legal battle, CEO Roland Smith says a decision from the judge in the case is expected before May 10.
- Previously: Office Depot misses by $0.02, misses on revenue (April 26)
Tue, Apr. 26, 6:52 AM
Mon, Apr. 25, 5:30 PM
- ABG, ABX, AHGP, AIXG, AKS, ALLY, ARLP, ATI, AVX, AXE, BAX, BEAV, BLMN, BP, CNC, CNX, COH, CPLA, CRS, CTG, CYNO, DD, DFRG, DTE, ENTG, ETR, FBC, FCAU, FCH, FCX, FLIR, FLWS, FMER, GLPI, GLW, GPK, HSY, HUBB, HZO, ICLR, IIVI, IR, JBLU, JNS, LLY, LMT, LPT, MAS, MDXG, MHFI, MMM, NCI, ODP, PAG, PCAR, PCH, PG, PH, PNR, POL, R, RAI, SAH, SAVE, SCL, SIR, SPG, ST, SUI, SVU, TEN, TMUS, TRI, TROW, WAB, WAT, WDR, WHR, WYN
Fri, Apr. 22, 9:05 AM
- Staples (NASDAQ:SPLS) nominates three new directors to jump on the board of the company.
- Curtis Feeny (Voyager Capital director), Deb Henetta (ex-Procter & Gamble), and John Lundgren (Stanley Black & Decker CEO) are the three execs that Staples has in mind to help tackle the integration of Office Depot (NASDAQ:ODP) if the merger clears regulatory and legal hurdles.
- Shares of Staples are down 4.2% on the week as investors try to get a read on how a judge will rule in the FTC case.
- Now read: Office Depot Shares Are Cheap With Or Without The Merger
Thu, Apr. 21, 3:53 PM| Thu, Apr. 21, 3:53 PM | 8 Comments
Office Depot, Inc. provides products, services and solutions for every workplace - whether their workplace is an office, home, school, or car. The company's core office supplies include print and document services, business services, facilities products, furniture, and school essentials. Its... More
Industry: Specialty Retail, Other
Country: United States
Other News & PR