Starboard Plans Proxy War For Board Representation in Office Depot

Starboard Plans Proxy War For Board Representation in Office Depot
Starboard Value

Hedge Fund Starboard Value LP plans to launch a formal proxy war to place four of its nominees on the board of Office Depot Inc (NYSE:ODP).

Play Quizzes 4

Starboard Plans Proxy War For Board Representation in Office Depot

The activist hedge fund Starboard Value LP’s slate of four directors includes former The Home Depot, Inc. (NYSE:HD) and Chrysler CEO Robert Nardelli and the hedge fund’s own Jeffrey Smith. The hedge fund indicated that it intends to file its proxy materials with the Securities and Exchange Commission shortly.

London Value Investor Conference: Joel Greenblatt On Value Investing In 2022

The first London Value Investor Conference was held in April 2012 and it has since grown to become the largest gathering of Value Investors in Europe, bringing together some of the best investors every year. At this year’s conference, held on May 19th, Simon Brewer, the former CIO of Morgan Stanley and Senior Adviser to Read More

Earlier, Starboard Value LP, an activist hedge fund, nominated six candidates to the board of directors of Office Depot, Inc. (NYSE:ODP) revealing that it is significant for the company to reconstitute itself now whether it intends to continue as a standalone company or to merge its business with OfficeMax Inc (NYSE:OMX).

Starboard Value LP is now scaling back its earlier effort to unseat six of the company’s directors.

Office Depot to Schedule Annual Meeting in August

The hedge fund announced in a statement today that it is pleased that the Delaware Chancery Court has ordered Office Depot Inc (NYSE:ODP) to hold its 2013 Annual Meeting on August 21, 2013.

The hedge fund had been pressing Office Depot Inc (NYSE:ODP) for several months to schedule its 2013 annual meeting and commenced a consent solicitation to remove several existing directors in favor of Starboard’s nominees when it became apparent the company would continue to indefinitely delay holding its annual election of directors.

The hedge fund took the unusual step earlier this month of suing Office Depot Inc (NYSE:ODP) for not scheduling the meeting. Office Depot Inc (NYSE:ODP) eventually set the August date and said a Delaware court also confirmed the plan. Starboard and Office Depot Inc (NYSE:ODP) are disputing the timing of the scheduling and merits of the litigation.

Starboard in Favor of OfficeMax Merger

Starboard Value LP indicated is in favor of the OfficeMax Inc (NYSE:OMX) merger. However, the hedge fund continues to strongly believe that the Office Depot Inc (NYSE:ODP) board must be significantly enhanced now with new, highly-qualified directors.

Earlier, Office Depot, Inc (NYSE:ODP) announced its intention to acquire its rival OfficeMax Inc (NYSE:OMX) by the end of the year.

The hedge fund has said it will remain the largest holder in the combined Office Depot Inc (NYSE:ODP) and OfficeMax Inc (NYSE:OMX), and that it wants the best Office Depot representation on the board of the combined company.

Updated on

Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports
Previous article Apple Inc. (AAPL) Opens Online Store’s Door In Russia
Next article Longboard PM Sees ‘Incredible Demand’ for Alternative Forms of Diversification

No posts to display