Office Depot Inc (ODP) & Starboard Value’s End Run Around It

Know thy enemy
Perhaps key is Joseph Vassalluzzo, who until a few years ago was vice chairman of Staples, Inc. (NASDAQ:SPLS) , the largest office-supply company, where he was in charge of all their M&A activity. As Office Depot Inc (NYSE:ODP) seeks to absorb its rival, having someone on board with insights into how the biggest player in the space operates ought to be a welcome addition to the board.

No doubt Starboard has been strident in its criticism, but review the performance of Office Depot Inc (NYSE:ODP) next to its rivals, and even OfficeMax looks like a standout.

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The recession and subsequent jobless “recovery” have weighed heavily on all three players, and the industry would have been better office had Staples been allowed to acquire Office Depot Inc (NYSE:ODP) years ago. Yet the merger signals an opportunity to learn from past mistakes, and I’d have to agree that the time for change has come and the rationale behind Starboard’s efforts to replace the board rings true.

The article Starboard’s End Run Around Office Depot originally appeared on Fool.com is written by Rich Duprey.

Fool contributor Rich Duprey owns shares of General Electric. The Motley Fool recommends Home Depot and owns shares of Citigroup, General Electric, and Staples.

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