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Staples To Buy Office Depot At An Insane Price

Staples Inc. (SPLS), one of the largest office supply superstore chains in the U.S., agreed to buy nearest rival Office Depot Inc. (ODP), the world's largest sellers of office products, in a $6.3-billion cash-and-stock deal to better compete against online and big-box retailers.

Staples said it would pay $7.25 per share in cash and 0.2188 of its shares for each Office Depot share. The offer values Office Depot at $11.00 per share based on Staples closing price on Feb. 2, of $17.14, the last trading day prior to media speculation that a deal was near. The offer price is a premium of 44 per cent to Office Depot's Monday's close of $7.63. Office Depot's shares closed up 21.6 per cent at $9.28 on the NASDAQ on Feb. 3 after the Wall Street Journal reported that the two companies were in advanced talks.

Staples said on Wednesday that it began talks… Read More …