12:45 PM Credit Suisse thinks the time is ripe for the long-awaited merger between Office Depot (ODP -2.6%) and OfficeMax (OMX +0.3%) to finally occur. A combined company could create some synergistic opportunities and give Staples (SPLS +0.8%) something to think about in the sector. But is it too late to catch the wave? Shares of OfficeMax and Office Depot have already drawn investors in this year on M&A speculation, up 13% and 38% YTD respectively. Read comments
That has been in the news for sometime. Office Depot has not seen the light at the end of the tunnel yet. They have been spending the bank on trying to downsides and paying the BC Partners dividend. With the head of the US store and Business division head stepping down that could pave the way to closer ties but the loses have to mount further reducing ODP options in the market place. If they do join it would eliminate both the redundancy in Mexico units as well as stores in the states. BC Partners have to want this to happen, they own seats on the board and have a poison pill defensive against the Starboard accumulation of shares over 15%. They could reduce cost in both US and Mexico and use that to grow over seas. Might be a company that could compete with Staples.