Office Depot rejects takeover offer from Staples, but says it’s open to other types of ventures

Office Depot has rejected one other takeover try by workplace provide rival Staples, in accordance to a letter despatched Tuesday by an organization government.

However, the father or mother firm of Office Depot, ODP, stated it’s open to a special type of a deal, resembling promoting its retail and e-commerce companies to Staples or agreeing to a three way partnership, in accordance to the letter.

In the letter, ODP Chairman Joseph Vassalluzzo wrote {that a} deal that is not a full takeover “could be executed more efficiently and with far greater certainty and less regulatory risk than your proposal.”

“It would also help maintain competitiveness against nontraditional retailers and optimize ongoing choices for consumers,” he wrote. The letter was despatched to Stefan Kaluzny, managing director of Sycamore Partners and a board member of USR Parent, the subsidiary that owns Staples.

The rebuffed offer was first reported by The Wall Street Journal.

Shares of ODP have been down greater than 1.5% in noon buying and selling Tuesday to $45.

Staples has sought to purchase Office Depot’s father or mother firm, ODP, two other instances. Five years in the past, antitrust officers blocked a merger between the 2 corporations and despatched shares of the 2 corporations tanking.

In the newest try, Staples proposed to buy the corporate on Jan. 11 for greater than $2 billion, or $40 a share, in accordance to the Journal.

Along with Office Depot, ODC additionally owns OfficeMax, one other chain of workplace provide shops, and CompuCom, an data expertise firm.

Read the letter right here.

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