So Staples announced that they are selling the Enterprise division to ESND: Essendant. The after hours stock of spls has swung widely up and down. Don't' worry that it will settle on the up side. It won't. This is an attempt to LOOK like they are doing something that makes the merger seem more likely. In fact the deal is dependent upon the merger actually going through and exactly NOTHING has happened other than a press release. The up and down after hour swings are more likely insider illegal trading which should be investigated by the sec and the ftc. Maybe R, D, or O trying to recoup losses :-) Still predicting $4.50 by end of April....
4 replies (most recent on top)
The FTC has to be laughing at this newest attempt at getting it past them. Half the original offer? Definitive sign of a company desperate to survive at any cost. Than again these MWBE contracts are a joke to. Erin with, no money in them, pay the partner a commission, and get screwed when it comes time for Staples to collect the past due invoices.
Staples selling $550 million of their contract business for $22.5 million? Hahahaha. What a lie! No one is that stupid. What they're selling off is not worth anywhere near $550 million. Another spin campaign brought to you by the spinsters at Staples. Words and numbers are so easy to manipulate.
Ron knows he is done if the buyout does not happen and/or the stock goes up. He is very desperate. I feel bad for any store that gets him or O visiting in the next couple months.
It could get interesting to watch. It kind of feels like the more he reaches to get the buyout approved, the more the company falls apart from the inside.
The board needs to wake up and kick Ron and Otis to the curb and pay OD the $250 mill out of their severance packages.
This was a waste of time announcement and it means absolutely nothing. Like OP said, this will only happen if the merger goes through. This is not forward movement in any way. Maybe tomorrow Staples will have another announcement on how "green" they are and how they're saving the planet just to keep that stock moving. So many falsehoods. So sad.