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Industry News
 
CE accepts “fair offer” from Staples

11 June 2008 - Amsterdam, Netherlands

The Corporate Express takeover saga has finally ended after the Dutch contract stationer agreed to another improved offer from Staples.

 Corporate Express’ executive and supervisory boards have unanimously recommended Staples cash offer of €9.25 per share, which values the company at €1.7 billion ($2.55 billion) before debt.

In a statement, Corporate Express said that it had reached agreement with Staples on a number of key strategic, integration and staffing issues.

Peter Ventress will become president of Staples International, overseeing Staples’ business outside North America. He will report directly to Staples CEO Ron Sargent.

The European contract business will have its headquarters in Amsterdam and Staples have confirmed that they will make no material reductions in the workforce.

An integration committee, comprising senior management from both Corporate Express and Staples, will oversee the integration process.

“We believe that this offer is a good one for our shareholders and we recommend it wholeheartedly”, said Peter Ventress.

This, of course, means an end to the proposed takeover by Corporate Express of Lyreco, and the transaction has now been terminated.

Corporate Express said that while it believed that there was clear strategic and financial rationale for the merger, “the boards decided to withdraw their recommendation for the Lyreco transaction and to recommend the latest improved and fair offer from Staples”.

The EGM of 18 June will still go ahead, but a vote on the Lyreco deal will not now take place.

Corporate Express said that it would release a more detailed position statement on 12 June.

-Source: Opi.net
 
Staples launches hostile bid for CE

20 May 2008 - Amsterdam, Netherlands

Staples has officially launched its hostile €1.5 billion ($2.43 billion) takeover bid for Corporate Express.

Staples says that it has gone directly to Corporate Express’ shareholders with the €8.00 per share offer after the “unwillingness” of the Dutch company’s management to negotiate an offer.

“I firmly believe that our offer of €8.00 per share delivers superior value to Corporate Express shareholders, and does so without the risks found in Corporate Express’ long-term business plan,” Staples’ CEO Ron Sargent said in a letter of Corporate Express’ shareholders.

In a statement, Corporate Express said that it noted Staples’ offer and reiterated its position that the “offer price still significantly undervalues the company and fails to reflect the company’s prospects”.

The tender period for the offer runs until 27 June, although it can be extended under certain conditions.

According to Staples, the enterprise value for the transaction, including net debt, is approximately €2.8 billion ($4.3 billion). Staples has already secured financing of €3 billion for the deal.

 

-Source: Opi.net
 
Auditor faults state purchase agency

09 May 2007-Raleigh (NC), USA

The state auditor today faulted the N.C. Purchase and Contract Division for not following up on pricing errors by Office Depot, the company providing state office supplies.

In a performance audit made public today, State Auditor Leslie Merritt said the division had not required permanent steps to correct pricing errors and problems with the availability of products.

The Purchase and Contract Division, which is in the Department of Administration, contracted with Office Depot on Feb. 1, 2006, to provide office supplies to state agencies.

As a result of the audit, Merritt said in a news release, Office Depot identified and credited the state $40,887 for overcharges.

Merritt said the division's process for monitoring the contract lacked follow up to make sure errors are identified and permanently corrected. He said the problem was "especially disconcerting" given that the division monitors 125 contracts with 400 vendors, representing a value of $1.4 billion.

The division said its contract with Office Depot saves taxpayers 71 percent off retail prices, according to the auditor's news release.

In response to the audit, officials in the Department of Administration said they did not concur completely with Merritt's conclusions and statements. Officials said the division "has done an exemplary job in the management of this contract to the benefit of the taxpayers" and had in place a system to monitor pricing and availability. Merritt previously faulted the division for its management of statewide contracts. In September, he said that the division had failed to discover that a vendor on the state tire retread contract had raised prices in violation of the contract.

-Source: The News & Observer
 
US Ring files patent lawsuit against Staples

06 May 2008 - St Louis (MO), USA

St Louis-based manufacturer US Ring Binder has filed a patent infringement lawsuit against retailer Staples.

US Ring filed the lawsuit in a Missouri district court on 25 April, alleging that Staples’ ‘Better Binders’ line infringes on a US Ring patent.

US Ring seeks the enjoinment of further patent infringement, treble damages and the impounding and destruction of all infringing products.

Anthony Simon, whose law firm is representing US Ring, commented: “US Ring invests heavily in its intellectual property and will take appropriate action when it feels its rights have been violated.”

-Source: Opi.net
 
Nebraska auditor slams Office Depot

29 April 2008 - Lincoln (NE),

The Nebraksa state auditor has concluded that Office Depot has been responsible for “serious pricing errors and overcharges” in its $3 million a year contract with the state.

Mike Foley said that the problems with the contract have been a monthly occurrence from the very first Office Depot invoice to the present.

“Office Depot is playing fast and loose with the privilege of doing business with the State and they ought to be held accountable,” he said in his report.

“Taxpayers deserve honest business practices and Office Depot needs to clean up its act.”

Foley said that his investigation of Office Depot was prompted by reports of  “questionable business practices” committed by Office Depot that have surfaced in Georgia, North Carolina and California.

The three-year contract expires on 31 May and instead of exercising a built-in extension clause, the state has decided to put the whole contract out for a new bid.

The University of Nebraska, which has a separate $3.3 million contract with Office Depot, has engaged the services of a private investigative firm to review the billings submitted by Office Depot to the university.

“I would not be the least bit surprised if the investigators eventually find problems with that contract as well,” speculated Foley.

Office Depot said that it was currently reviewing the Nebraska auditor’s report.

-Source: Opi.net
 
Local Governments in SW Florida Reviewing Office Depot Invoices for Possible Overcharging

Lee County, the City of Fort Myers and the Collier County School District in southwestern Florida are investigating whether they have been overcharged by Office Depot for office supplies, according to an April 24 report by WINK News in Florida. 

In this case, a former Office Depot employee and now whistle blower against the company, has been interviewed and has outlined his own direct experiences in adjusting prices after erroneous pricing was discovered by local governments for which he served as an Office Depot account representative.
Office Depot has denied these claims according to the WINK News report.

Watch local News 4 Coverage of this story

-Source: National Office Products Aliance (NOPA)