![]() ![]() That would require Staples to take on the responsibility of any a ntitrust risk, including any litigation or divestments. Vassalluzzo called on Staples "to expressly address the regulatory uncertainty by committing to bear the risk of potential antitrust obstacles or required remedies through a customary 'hell or high water' provision," if it insists on going forward with its plan as-is. He said the offer as it stands would expose Office Depot to " material uncertainty, significant financial burden, and the risk of significant damage to business in the event that regulatory approvals could not be obtained, as the experience of our prior failed transactions has shown." In 2016, in denying Office Depot and Staples an opportunity to merge, a judge didn't buy the argument that there was any more competition in the office supplies and services than at the time of their 1997 attempt, despite Amazon's strong entry into the space.Īny further endeavor to tie up would invite antitrust scrutiny, especially as proposed by Staples, Vassalluzzo warned in his letter. Office Depot is moving ahead with a sale of CompuCom, after a strategic review of the IT services unit, which the retailer bought in 2017, Vassalluzzo also said. ![]() In a letter to private equity firm Sycamore Partners' Managing Director Stefan Kaluzny, a member of the board at Staples' parent company, Vassalluzzo said the Office Depot board had "unanimously concluded that there is a more compelling path forward," including "combining our retail and consumer-facing ecommerce operations with Staples under the right set of circumstances and on mutually acceptable terms." Office Depot on Tuesday turned down Sycamore-owned Staples' $2.1 billion acquisition offer from last week, but Office Depot Chair Joseph Vassalluzzo did outline ways the two might combine retail operations. In its letter to ODP, Staples signaled that it was prepared to bypass ODP's board with an offer to stockholders "unless our negotiations for a consensual alternative transaction as proposed herein are successful." Dive Brief: ODP, which has rebuffed a takeover offer from Staples once this year and announced plans to split its retail unit from its B2B contracting business, acknowledged that it has received Staples' new offer and is "carefully reviewing" it. ![]() UPDATE: June 7, 2021: The parent of Staples has made a $1 billion proposal to buy the consumer business of ODP Corporation that would include the Office Depot and OfficeMax retail business, according to a press release. ![]()
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