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Friday, February 22, 2013

Office Depot, OfficeMax chief executives to be co-CEOs after deal, (NYSE: ODP)

Office Depot Inc, which will acquire rival OfficeMax Inc, said the chief executives of both companies would be appointed co-CEOs of the combined entity. The office supplies retailers will establish a selection committee consisting of an equal number of independent directors to identify successor CEO candidates, Office Depot said in a regulatory filing on Friday.Office Depot said on Wednesday it would acquire smaller rival OfficeMax in a $976 million all-stock deal but did not say who will lead the company or where it will be based.The combined company will have dual headquarters in Boca Raton, Florida and Naperville, Illinois, Office Depot said on Friday. Both companies will continue to operate under their existing names, until a new headquarters and a new name for the businesses is approved by the board.In case of termination of the merger agreement, either company may be required to pay the other a termination fee of $30 million.

Office Depot, Inc. (Office Depot) is a global supplier of office products and services. Shares of ODP traded higher by 5.78% or $0.23/share to $4.21. In the past year, the shares have traded as low as $1.51 and as high as $6.10. On average, 8912890 shares of ODP exchange hands on a given day and today's volume is recorded at 41085748.