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Staples, Inc. Message Board

  • AaCBrown AaCBrown Jun 7, 2001 3:23 PM Flag

    Odd Stemberg Quote

    Staples CEO Thomas Stemberg said he was �delighted with court�s decision� to force a delay of the shareholder vote on the Staples.com buyout. The reason, he continued, was that �the court did not challenge the fairness of valuing Staples.com at $7 per share.�

    Of course, this statement is pure posturing because the court was not in a position to assess the value of Staples.com. It was passing judgment on the legality of the approval process. As long as the Company follows the rules and presents all information fairly, the shareholders can vote to spend a trillion dollars to buy used coffee grounds.

    The odd thing about this quote is that it demonstrates Stemberg cares about the price of the shares, rather than the behavior of his Company or the efficiency of the deal. Imagine if this were an acquisition from a third party. Why would the CEO be �delighted� to learn the approval process was fatally flawed and the deal would have to be delayed? Only because there was no specific determination that the purchase price would have to be reduced? That should be further bad news�if he�s working for shareholders instead of the sellers.

    Aaron Brown

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    • I have been a Staples shareholder for the last 2 years. It is true that Stemberg does not care about shareholder any more. Trying to Staples.com at $7 per share is nothing short of robbery for regular shareholders. It only way we can defend ourselves and fight them, is to vote against this deal and make sure in each case our voice is heard loud and clear. Instead of talk we need to act.

      • 1 Reply to seaislandmist
      • I am a longtime Staples shareholder. The company has gone through rough times in terms of stock price, but it is still in first place in the office products industry. In the long term, Staples shareholders will win. The .com business and European operations are becoming profitable. The North American operations are industry leading.
        Don't dump on Stemberg. He started the category, he's relentless and his competitors are in disarray. Market forces are taking this stock down at this time but SPLS is a long term winner.
        The .com buy-back controversy is a red herring.
        You win if you attract and keep the best people. The .com IPO was a great idea at the time but the market changed - not SPLS' fault. What is the matter with hiring, rewarding and keeping the best people? It seems to me that it makes good business sense and creates shareholder value in the long term.
        Cheers,
        Wahnoo
        .

    • I'm glad I wasn't the only one that thought that quote was odd. As I said the other day I think Stemberg has outlived his usefullness and should step down in the intrest of fresh ideas!

 
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