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Office Depot Inc. (ODP)

  • Fri, Nov. 13, 3:37 PM
    • Staples (SPLS -1%) and Office Depot (ODP +0.4%) are in talks with the FTC regarding a potential transfer of ~$600M in corporate contracts to wholesaler Essendant (ESND +0.3%) in an attempt to alleviate antitrust concerns, WSJ reports.
    • The FTC has spent 10 months scrutinizing SPLS’ $6.3B acquisition of ODP amid concerns it would leave few competitive options for large corporations that buy office supplies in bulk.
    • The divestiture offer by SPLS and ODP is aimed at persuading the FTC that corporate customers would continue to have options for procuring office supplies if they are not satisfied with the products, prices or services offered by the combined company.
    | Fri, Nov. 13, 3:37 PM | 5 Comments
  • Mon, Oct. 12, 8:17 AM
    • Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) announce that an agreement has been worked out with the FTC to extend the review process on the merger of the retail chains.
    • The FTC says it will rule on the deal before December 8.
    • The Staples-Office Depot merger has been cleared by regulators in China, Australia, and New Zealand. The two companies are still working with authorities from the European Union and Canada on some competition issues.
    | Mon, Oct. 12, 8:17 AM | 4 Comments
  • Fri, Sep. 25, 6:17 AM
    • European Union antitrust regulators have opened an extensive investigation into Staples' (NASDAQ:SPLS) $6.3B bid for rival Office Depot (NASDAQ:ODP).
    • "The transaction could eliminate an important competitor and reduce the choice of suitable suppliers in already concentrated markets, which could lead to price increases," the European Commission declared.
    • It will decide by February 10 whether to approve or block the deal.
    • Previously: Staples and Office Depot slide after FTC flexes muscles (Sep. 22 2015)
    | Fri, Sep. 25, 6:17 AM | 1 Comment
  • Tue, Sep. 8, 4:55 PM
    • The FTC is intensifying its antitrust review of Staples' (NASDAQ:SPLS) planned takeover of Office Depot (NASDAQ:ODP), seeking sworn legal declarations that could be used if antitrust enforcers decide to challenge the deal, WSJ reports.
    • In its review, some of the FTC’s most probing questions have focused on the chains’ business with large corporate and government customers, according to the report.
    • The FTC has yet to decide whether to approve or challenge the merger, and it has until mid-October to decide whether to do so, although the deadline could be extended if the companies give the FTC more time.
    | Tue, Sep. 8, 4:55 PM | 1 Comment
  • Fri, Aug. 28, 5:19 PM
    • Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) say they will delay the closing of their proposed merger by 45 days to provide the FTC with additional information on the deal.
    • The merger has been seen as being at some risk due to regulatory pressures.
    • SPLS +1.7% AH.
    | Fri, Aug. 28, 5:19 PM | 1 Comment
  • Thu, Feb. 5, 10:14 AM
    • Janney Capital thinks Staples (NASDAQ:SPLS) was a little conservative when it estimated $1.6B in deal synergies from a merger with Office Depot (NASDAQ:ODP).
    • The investment firm sees fair value on Staples at $22.
    • Other analysis on the deal isn't quite so optimistic.
    • Staples will inherit another 2K stores that collectively haven't put up a positive comp since 2007, notes Harvard professor Rajiv Lal.
    • Another breakdown: SA contributor Dallas Salazar
    • Previously: Staples acquires Office Depot for $6.3B (Feb. 04 2015)
    • Shares of Staples are up 0.84% to $16.91 today. Office Depot (ODP) is hanging steady at $9.47 vs. the implied deal price of $11.
    | Thu, Feb. 5, 10:14 AM | 1 Comment
  • Wed, Feb. 4, 7:09 AM
    • Staples (NASDAQ:SPLS) announces it will acquire Office Depot (NASDAQ:ODP) for $6.3B.
    • The transaction values Office Depot at $11.00 per share vs. yesterday's closing price of $9.28.
    • The company expects to generate at least $1B in annualized cost synergies.
    • A closing before the end of the year is anticipated after a regulatory review is completed.
    • Shares of ODP are currently halted.
    | Wed, Feb. 4, 7:09 AM | 10 Comments
  • Tue, Feb. 3, 10:09 AM
    • Shares of Office Depot (NASDAQ:ODP) are up 19.7% and Staples (NASDAQ:SPLS) has run up an 11% gain as investors discount any concerns that regulators will get in the way of an office supply store mega-merger.
    • Retail analysts think significant cost savings could be derived from a merger as the combined store count of the chains is reduced.
    • Staples has over 3.8K stores, while the Office Depot/OfficeMax count is over 2K.
    • Previously: Staples, Office Depot in advanced talks to combine
    | Tue, Feb. 3, 10:09 AM | Comment!
  • Tue, Feb. 3, 2:03 AM
    • Facing pressure from activist investor Starboard Value, WSJ reports that Staples (NASDAQ:SPLS) and Office Depot (NASDAQ:ODP) are in advanced talks to merge.
    • Regulators nixed Staples' attempt to buy Office Depot in 1997, but the FTC approved Office Depot's $976M acquisition of OfficeMax in 2013 without the need to close any stores.
    • The price and structure of the proposed deal couldn’t be learned.
    • SPLS +5.2%; ODP +13% premarket
    | Tue, Feb. 3, 2:03 AM | 5 Comments
  • Dec. 11, 2014, 12:19 PM
    • Starboard Value will push for a merger between Staples (SPLS +8.2%) and Office Depot (ODP +13.2%), according to reports.
    • Though a merger between the two retail chains has been bantered around before, Starboard might have the clout to take the discussion into the boardroom.
    • Citi calls a mega office supply store merger unlikely.
    • Previously: Big moves in office supply sector after Starboard buys and raises
    | Dec. 11, 2014, 12:19 PM | 3 Comments
  • Dec. 11, 2014, 1:49 AM
    • Activist investor Starboard Value has bought a 6% stake in Staples (NASDAQ:SPLS) and raised its stake in Office Depot (NASDAQ:ODP) to 10%, in a move that could increase pressure for a combination of the office-supply retailers, WSJ reports.
    • If Starboard pushes for a deal, it would be the second time in recent months it pursued a merger of competitors, having called for a Yahoo-AOL combo since September.
    • Staples closed up 2.5% yesterday, Office Depot ended up 2.7%.
    | Dec. 11, 2014, 1:49 AM | Comment!
  • Nov. 6, 2013, 9:03 AM
    • Office Depot (ODP) and OfficeMax (OMX) complete their merger of equals. The combined entity will use the name Office Depot and trade on the NYSE under the symbol ODP.
    • The new Office Depot had TTM revenue through Q3 of ~$17B and more than 2.2K locations.
    • Cost synergies by the 3rd year following the merger are now expected to be in the upper half of the previously announced $400M-$600M range, excluding potential synergies from $2B of opex relating to retail stores and working capital savings that have not been evaluated yet. ODP expects to incur ~$200M in costs associated with the merger in 2013 and up to $600M-$650M to realize estimated synergies.
    • B. Riley has upgraded ODP to Buy from Neutral with a PT of $7.
    • ODP Q3 results, OMX Q3 results
    | Nov. 6, 2013, 9:03 AM | 1 Comment
  • Oct. 21, 2013, 4:38 AM
    • The Federal Trade Commission is reportedly set to give antitrust approval to the merger of Office Depot (ODP) and OfficeMax (OMX) without requiring the retailers to make divestitures.
    • The FTC has concluded that the tie-up won't reduce competition substantially, mainly because of the size of e-commerce in the sector.
    • The companies hope to appoint a CEO to run the merged entity once the FTC has given its authorization.
    | Oct. 21, 2013, 4:38 AM | Comment!
  • Aug. 21, 2013, 3:01 AM
    • Just hours ahead of its shareholders meeting today, Office Depot (ODP) has averted a proxy battle with Starboard Value, its biggest shareholder, by agreeing to support the nomination of three of the latter's candidates for the company's board .
    • Starboard, which owns a 14.6% holding, had originally wanted six directors.
    • The agreement will lead to the board increasing to by one member to 11. One of Starboard's directors will sit on the committee searching for a CEO for Office Depot and OfficeMax (OMX) for when their merger is completed.
    • The settlement came not long after Office Depot said the sides had failed to reach a deal. (PR)
    | Aug. 21, 2013, 3:01 AM | Comment!
  • Jun. 4, 2013, 10:57 AM
    Office Depot (ODP -2.5%) says it reached a final agreement to sell its 50% stake in Office Depot De Mexico to Grupo Gigante. The deal valued at $690M is contingent on approval from Mexican regulators.
    | Jun. 4, 2013, 10:57 AM | Comment!
  • Mar. 17, 2013, 5:23 AM
    Office Depot (ODP) has reportedly extended talks to sell its 50% stake in its Mexican unit to Grupo Gigante, which holds the rest, after the deadline for a deal expired on Friday. The sides have continued the negotiations partly because of Office Depot's merger with OfficeMax (OMX).
    | Mar. 17, 2013, 5:23 AM | Comment!
Company Description
Office Depot Inc is a supplier of office products and services. It offers products including office supplies, paper, ink & tone, cleaning chemical & equipment's, monitors & equipment's, computers & tablets, office appliances, and school supplies.