Office Depot purchase of rival hits snag

Office Depot said it had agreed to buy OfficeMax, a rival US stationery retailer, for about $1.2 billion yesterday, but then quickly withdrew its deal announcement, which appeared to have been published prematurely.

In an all-stock deal, Office Depot said it would issue 2.69 shares for each OfficeMax share, valuing the smaller group at $13.50 per share based on Tuesday’s closing price – according to several media outlets that saw the announcement. The announcement, which appeared within a press release about Office Depot’s fourth-quarter earnings – originally scheduled to be released next week – was withdrawn. The two companies declined to comment amid reports that it had been a draft that was published in error and could be subject to change. – (Copyright The Financial Times Limited 2013)