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Tuesday, January 20, 2015

Starboard asks Staples to merge with Office Depot, (NASDAQ: ODP), (NASDAQ: SPLS)

Activist investor Starboard Value LP called for office-supply chains Staples Inc and Office Depot Inc to merge, saying a combined company would lead to greater savings.The hedge fund owned a 5.1 percent stake in Staples, as of last month, and it boosted its holdings in Office Depot to nearly 10 percent.A merger will result in synergies of at least $2 billion, more than doubling operating profits, Starboard Managing Member Jeffrey Smith wrote in a letter to Staples' Chief Executive Ronald Sargent on Tuesday."If it becomes clear to us that you have no intention of seriously pursuing this unique and highly attractive opportunity, it would be a clear sign that significant leadership change is needed at Staples," Smith said.

Office Depot, Inc. (Office Depot) is a global supplier of office products and services. Shares of ODP fell by 0.62% or $-0.05/share to $7.99. In the past year, the shares have traded as low as $3.84 and as high as $8.91. On average, 10344800 shares of ODP exchange hands on a given day and today's volume is recorded at 2821913.

Staples, Inc. (Staples) is an office products company. Shares of SPLS fell by 1.5% or $-0.26/share to $17.09. In the past year, the shares have traded as low as $10.70 and as high as $18.33. On average, 12564500 shares of SPLS exchange hands on a given day and today's volume is recorded at 2452701.



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