Office Depot Inc. (ODP) has completed talks with Grupo Gigante SAB and next week will disclose the definitive terms for selling its Mexican business to the joint-venture partner.
The announcement of a sale assumes consent by OfficeMax Inc. (OMX), and there are no assurances that a sale will occur, the Boca Raton, Florida-based company said today in a filing with the U.S. Securities and Exchange Commission. Earlier this month, Office Depot said it received agreement from Naperville, Illinois-based OfficeMax to proceed with the Gigante negotiations. Office Depot is seeking to buy OfficeMax.
Gigante, which already owns half of Office Depot de Mexico, has lined up financing and received indications from Office Depot that its February offer to buy the rest for $700 million will be accepted, a person with knowledge of the matter said this month. Office Depot is considering the sale amid pressure from its largest shareholder, Starboard Value LP, to cut costs and improve operations.
Office Depot rose 1.6 percent to $4.41 at the close in New York. The shares have gained 34 percent this year, while the Standard & Poor’s 500 Index has increased 14 percent.
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