Activist Client Starboard Urges Office Depot to Explore Sale of its Joint Venture Interest in Mexico

The Wall Street Journal, Reuters, Bloomberg and other national media reported on a press release and letter issued by Starboard, the largest common shareholder of Office Depot (ODP), restating its belief that the significant value of ODP’s 50% joint venture interest in Office Depot de Mexico is not fully reflected in ODP’s stock price. Starboard urged the Board to promptly obtain consent from OfficeMax under the ODP-OfficeMax merger agreement to immediately explore a sale of the Mexico JV Interest to maximize value for shareholders. Last week, ODP announced it would merge with smaller rival OfficeMax Inc. in a $976 million all-stock deal. ODP has confirmed it received an offer from its partner in Mexico, Grupo Gigante, to buy ODP out of the joint venture for $690 million. Steve Wolosky and Andrew M. Freedman represent Starboard in connection with its activist investment at Office Depot.