Office Depot/OfficeMax Merger: Another Nail in the Coffin of Traditional Retail?
The strong start to 2013?s M&A market continued yesterday, with Office Depot announcing it would acquire its rival OfficeMax in a $1.17 billion deal. Despite the heavy press coverage, investors greeted the announcement with a collective “meh,” as Office Depot shares fell 16.73% in trading yesterday, while OfficeMax’s shares fell 7%. (Although OfficeMax shares did rise when rumors of the merger leaked earlier in the week). This indifference should tell us a number of things. The first is that Office Depot and OfficeMax are far less efficient enterprises than their larger office-superstore rival, Staples. As Morningstar analyst Joscelyn MacKay wrote in a research note, the merger between Office Depot and OfficeMax will make the company the largest office superstore by store count with roughly 2,000 domestic locations compared with Staples’ 1,900. But even with that store advantage, the combined company’s revenue is just 70% of Staples top line. In other words, the combined company ...
United States: Court Rejects PBGC Position That An Investment Fund Is Part Of A Controlled Group For Purposes Of Pension Liabilities Of A Portfolio Company - Mayer Brown
Late in 2012, in Sun Capital Partners v. New England Teamsters ("Sun Capital"),1 a federal district court in Massachusetts (the "District Court") held that certain private equity funds were not trades or businesses that could be held jointly and severally liable for the pension obligations of a portfolio company in which such funds had invested.
Found more than 1 month ago on channel Mondaq