Office Depot Inc said on Wednesday that it had reached a deal to purchase smaller rival OfficeMax Inc for $1.17 billion in stock to get more clout with suppliers and better compete against Staples Inc and Amazon.com Inc.Office Depot will issue 2.69 new shares of common stock for each outstanding common share of OfficeMax. At Tuesday's closing prices, the deal is valued at $13.50 per share, or $1.17 billion, based on 86.7 million shares outstanding as of Oct. 26.After the merger is completed, Office Depot's board will consist of an equal number of directors chosen by that company and OfficeMax.The news comes as both companies face pressure from investors to boost profitability and lift their sagging shares.
Amazon.com, Inc. (Amazon.com) serves consumers through its retail Websites and focuses on selection, price, and convenience. Shares of AMZN remained unchanged at $269.75. In the past year, the shares have traded as low as $176.50 and as high as $284.72. On average, 3575370 shares of AMZN exchange hands on a given day and today's volume is recorded at 3848.
Office Depot, Inc. (Office Depot) is a global supplier of office products and services. Shares of ODP remained unchanged at $5.02. In the past year, the shares have traded as low as $1.51 and as high as $6.10. On average, 6317940 shares of ODP exchange hands on a given day and today's volume is recorded at 2079419.
Staples, Inc. (Staples) is an office products company. Shares of SPLS remained unchanged at $14.65. In the past year, the shares have traded as low as $10.57 and as high as $16.93. On average, 11679200 shares of SPLS exchange hands on a given day and today's volume is recorded at 452541.
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