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Bloomberg
The parent of Office Depot said it’s open to a potential tie-up with Staples, but only if it can avoid the regulatory pushback that derailed their last merger attempt.
ODP Corp sent a letter to Sycamore Partners, the private-equity owner of Staples, rejecting Staples’ original offer and suggesting some alternative directions. ODP would be open to either a joint venture or a deal where Staples buys only its retail and consumer-facing e-commerce operations, it said, noting that Staples’ unsolicited offer to acquire it for $40 a share would bring too much regulatory risk.
“The board has unanimously concluded that there is a more compelling path forward to
create value for ODP and
its shareholders than the potential transaction described in your proposal,†ODP Chairman Joseph Vassalluzzo said.
Last week, closely held Staples, under the corporate name USR Parent Inc, sent a letter
to ODP laying out a plan to buy the company in a deal valued at about $2.1 billion.