I am pretty sure that Staples is making more money than ODP is losing.
Long term sure this could be a disaster for Staples if they merge. But short term there is money to be made and IMO the only thing that is going to stop this merger are the Feds.
Staples will make one of the worst decision to merge with Office Depot, I stop shopping at OfficeMax and
Office Depot years ago of high prices in everything, from papers to almost everything else, and poor customer service. I would not short the stock.
Personally, at one time, about $200 per year, from toners to papers, but times have change, everything went to digital, I spend much much less. I shop at Costco, Staples, and discount stores. You can tell by looking at the sales of OfficeDepot and OfficeMax, it has been going down for years, looking at the number of stores
closing. It's plain stupid paying for about $22 mil for each OfficeDepot store, and if that's what you think of
cornering the office supplies market.
Sie haben gut gemacht, Sammler! I hope you're still long the stock. I am going to sell now and take my large gain and move on. There may be even more value to pull out if they do merge, but I have almost doubled my money. Hope you're in the position for the same.
I am going to ring the register now and lock in my 75% gain. I was investing based on merger hopes, and Office Depot/Office Maxx and Staples are now in talks. So I will sell since it's up on the rumor.
If you go to Walmart's website you will find any office supply you need, and a lot cheaper.
Even if these two did combine their not going to over power Walmart. The economy still suks and people don't have enough money to pay more at Staples/Office Depot.
Why do these "headline news" all sound like a pump-n-dump to make Starboard more wealthy? I bet by years end Starboard won't even own 1 share of either company.
Deal is not a sure bet to get approved based on the elimination of a major office supply only competitor in the retail sector. Starboard had best get some serious lobbying in with the Feds. Target, WalMart, and FedEx Office might not represent enough competition in that space.
Sentiment: Strong Sell
I can buy ANY office supply through Walmart's store or their website for less money. And that's including NAME brands.
Both Staples and Office Depot shareholders lost on this deal. Only one that made out was Starboards and I bet their selling into this news as we speak.
By years end Starboard "probably" won't own one share of any of these two.
I say this should not be allowed.
There would be no competition with enterprise customers - The next largest player would be WB Mason and they are no match for national accounts compared to SPLS/ODP. Not even close..
The Government stepped in and put the kibosh on the 3M/Avery deal and that was nothing compared to this.
I don't think this should be allowed.