May 24th - part of the PR on B-Berg
Grupo Gigante SAB, a Mexican owner of office-supply stores, has lined up financing from Credit Suisse Group AG (CSGN) and Banco Bilbao Vizcaya Argentaria SA (BBVA) for its proposed takeover of Office Depot Inc. (ODP)’s local unit, a person with knowledge of the matter said.
Gigante, which already owns half of the unit, has received indications from Office Depot that its offer to buy the rest for $700 million will be accepted as soon as next week, said the person, who asked not to be named because the discussions are confidential. Office Depot shares rose as much as 2.8 percent today before trimming gains to 0.9 percent in New York. Gigante shares were unchanged.
IMO, the 700M from the Mexico sale is nearly 60% of the value of the stock swap for all of OMX so the market has to react strongly positive to this news. The one issue with both ODP and OMX stocks right now is that until the merger closes, the PPS may not move as they would as separate companies, so normally the influx of 700M to ODP would bring a huge PPS increase immediately, it may be more modest now with a growing increase after the merger when the analysts will get a look at the consolidated balance sheet.