Acquisition of OfficeMax Incorporated by Office Depot, Inc. May Not Be in the
Best Interests of OfficeMax Incorporated Shareholders
SAN DIEGO and NAPERVILLE, Ill., Feb. 22, 2013
SAN DIEGO andNAPERVILLE, Ill., Feb. 22, 2013 /PRNewswire/ --Shareholder
rights attorneys at Robbins Arroyo LLP are investigating the acquisition of
OfficeMax Incorporated (NYSE: OMX) by Office Depot, Inc. (NYSE: ODP).
OfficeMax, together with its subsidiaries, distributes business-to-business
and retail office products.
On February 20, 2013, OfficeMax and Office Depot announced a definitive merger
agreement whereby the companies will combine in an all-stock merger.
OfficeMax shareholders will receive 2.69 Office Depot common shares for each
share of OfficeMax common stock, an implied cash value of $13.50. The
transaction has been unanimously approved by the board of directors at both
companies and is expected to close by the end of 2013.
The Board of Directors' Actions May Prevent OfficeMax Shareholders from
Receiving the Maximum Value for Their Stock
Robbins Arroyo LLP's investigation focuses on whether the board of directors
at OfficeMax is undertaking a fair process to obtain maximum value and
adequately compensate its shareholders in light of the proposed acquisition.
The merger consideration is below the $15.00 target price of Sidoti and Co.
and the $17.00 target price of B. Riley and Co.
Further, on February 20, 2013, OfficeMax reported financial results for the
fourth quarter and full year 2012. Specifically, during the full year 2012,
OfficeMax generated $185.2 million in cash flow from operations compared to
$53.7 million in the full year 2011. Moreover, OfficeMax's retail segment
experienced an increase in gross profit margins to 28.2% in the fourth quarter
of 2012 from 26.9% on the fourth quarter of 2011. Bruce Besanko, Executive
Vice President, Chief Financial Officer, and Chief Administrative Officer of
OfficeMax stated, "Our continued strong financial position enables us to
invest in our strategic objectives, which we believe will create long-term
value for shareholders."
Given these facts, the firm is examining the board of directors' decision to
sell OfficeMax now rather than allow shareholders to continue to participate
in the company's continued success and future growth prospects.
OfficeMax shareholders have the option to file a class action lawsuit against
the company to secure the best possible price for shareholders and the
disclosure of material information so shareholders can vote on the transaction
in an informed manner. OfficeMax shareholders interested in information about
their rights and potential remedies can contact Darnell R. Donahue at (800)
350-6003, firstname.lastname@example.org, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation
and shareholder rights law. The firm represents individual and institutional
investors in shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested. For more information, please
go to http://www.robbinsarroyo.com.
Press release link:
Attorney Advertising.Past results do not guarantee a similar outcome.
Darnell R. Donahue
Robbins Arroyo LLP
(619) 525-3990 or Toll Free (800) 350-6003
SOURCE Robbins Arroyo LLP
Press spacebar to pause and continue. Press esc to stop.