Office Depot urges shareholders to back Staples deal

Office Depot will urge its stockholders to support a merger with Staples by asking them to vote in favor of the $6.3 billion acquisition by Staples at an annual meeting, according to a regulatory filing.

Industry insiders say the merger could help the pair solidify their positions in the office supplies market and fend off gains made by Amazon and Walmart in the category.



According to a proxy statement filed with the Securities and Exchange Commission on Monday, shareholders are encouraged to vote in favor of the deal. The meeting will take place at the Renaissance Boca Raton Hotel on an as-yet-unnamed date.



"Your vote is very important,” read the proxy statement. “Staples and Office Depot cannot complete the merger without the adoption of the merger agreement by Office Depot stockholders. It is important that your shares of Office Depot common stock be represented and voted regardless of the size of your holdings. Whether or not you plan to attend the annual meeting, Office Depot urges you to submit a proxy in advance of the annual meeting to have your shares voted by using one of the methods described in the accompanying proxy statement/prospectus."



Some shareholders do not believe Office Depot executives negotiated the best deal, and are filing lawsuits against the company. According to a report Office Depot filed March 20 with the SEC, nine lawsuits claiming that Office Depot executives violated their fiduciary duties have been filed in Delaware; two lawsuits were filed in the Fifteenth Circuit Court of the State of Florida.