How do you create shareholder value in a market defined by $130/barrel, rising unemployment, and inflationary concerns? By acquiring a large competitor and ruthlessly focusing on servicing customers.
The Dow was down 1.68% today and the NASDAQ was off 2.25%, yet Staples (SPLS) was up a whopping 5.30%. They achieved this by thoughtfully, and systematically increasing its then hostile tender offer for Dutch giant Corporate Express (CXP) from an initial 7.25 euros on Feb 19th to 8, then 9.15 to the final, and now-friendly price of 9.25 euros.
To recapitulate, CXP shareholders are up 176% from the prior 12mo low, and the shareholders of SPLS reward the acquisition announcement by buying more shares on the news and driving up the price. Well done.
marty