Starboard Value Taking Activist Interest in Office Depot’s Struggles

September 21st, 2012
| More
Struggling retailer Office Depot has become the new target of activist hedge fund, Starboard Value. According to Deal Book, Starboard Value has acquired a 13.3 percent interest in Office Depot with the intent of forcing operational changes to bring its earnings and margins in line with its competitors.

In a communication to the Office Depot’s board of directors, Starboard Value made it clear that it expects to see the company take additional measures to improve company performance including reduced spending and the sale of noncore assets. Office Depot owns 50 percent of a Mexican joint venture that, according to Starboard Value could be worth more than Office Depot’s market value. Office Depot’s main competitors, Office Max and Staples, far outpace Office Depot in both earnings margins and stock price performance.
For Detailed Investor Profiles on these Investors, click below:
Starboard Value
Related People: Jeffrey Smith, Mark Mitchell, Peter Feld, Gavin Molinelli, Kenneth Marlin
Related Entities: ; Ramius Capital Group*; Ramius Small-Cap Value*; RCG STARBOARD ADVISORS LLC; Starboard Intermediate Fund; Starboard Value and Opportunity Fund
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Investment Management and Hedge Fund Firm Mergers, Acquisitions, Spin-offs and Transactions


More Recent Headlines

Jonathan Relph Joins the Fidelity Investments Reunion at Graham Clapp’s Pensato Capital

Inspiration or Insanity? Fed action and Market Reaction

Treesdale Partners hires Yoon Chang & Ashley Honey - Launches $20 Million Treebrook Macro Fund

Top 100 Hedge Funds hold Steady, Allocate $528B to Equities

Jana Partners Reaps Healthy Profit with Short-term Barnes & Noble Trade

Vinay Pande Leaves Deutsche Bank for Brevan Howard Asset Management

Top New York Hedge Funds Dominate Rankings; Top 100 Oversee $409 Billion

Phoenix Investment Advisor Adds to Team as AUM Increases

TELUS Fights Mason Capital’s Shareholder Meeting in Court

Effective Activism, on the Cheap - Update