Corporate Express NV has rejected an increased takeover bid of eight euros per share from Staples Inc., which it says still significantly undervalues the company.
The Dutch office supplies firm said the offer does not reflect the company’s prospects, adding that it ignores its ongoing operating value and strategic plan. The offer is the second in three months from the US firm.
Discussions
In an open letter to Staples, Corporate Express explained, “At the price level currently indicated by Staples, all synergies would be for the benefit of the Staples shareholders and none for the benefit of our shareholders.”
The Dutch stationery company added, “However, we are happy to discuss our views and your views in more detail.”
Analysts have speculated that the offer may have to rise further as shares in Corporate Express were up 6.2 percent at 8.08 euros.
The latest bid values the Dutch company at about €1.46 billion and Staples has secured a $3 billion credit line for the deal.
Ron Sargent, Chairman and CEO of Staples, said yesterday, “We announced a highly attractive offer for Corporate Express at a compelling valuation. We are offering certain cash value versus the considerable uncertainties of management’s long range guidance.”
May 14, 2008