Staples Inc. (NASDAQ: SPLS) has come out and raised its bid in its hostile takeover attempts of Dutch rival Corporate Express N.V. (NYSE: CXP).
In late February, Corporate Express rejected Staples' bid for $10.63 per share. Today is the Dutch market regulator deadline to register an official bid. This morning, Staples upped its price by 10% to $12.53 per share for a total value of $2.26 billion. The offer is a 51% premium to Corporate Express' share price the day before the initial offer.
It seems that this sweetened offer may at least get Corporate Express interested in negotiating at this point. This time, Corporate Express has issued a statement that they are willing to negotiate and review the offer.
Corporate Express provides wholesale office supplies and printing and graphic services and an acquisition will increase the margins for Staples' overseas retail operations-a much needed boost in light of recent sales declines in the U.S.
Shares of Staples are up $0.30 at $22.26 in early morning trading. The 52-week range is $19.69 to $26.00. They plan to release earnings May 20.
Corporate Express is also trading up at $0.30 at $12.50 on relatively high trading volume. The 52-week range is $5.20 to $15.45. The market cap sits at about $2.29 billion.
Staples sweetens Corporate Express buyout offer
Recent Posts
- Private equity tries to feast on Lyondell blow-up (1/07/2009)
- New Year's resolution for VCs: Survival (1/05/2009)
BloggingBuyouts is provided for informational purposes only. Nothing on the service is intended to provide personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio or securities, transaction, investment strategy or other matter. You are solely responsible for any investment decisions that you make. The contributors who provide the content of BloggingBuyouts may, from time to time, hold positions in the securities discussed at the time of writing and they may trade for their own accounts. Such holdings will be disclosed at the time of writing. By using the site, you agree to abide to BloggingBuyouts' Terms of Use.
