NEW YORK (AP) — Office Depot’s biggest shareholder is nominating six people for the office products company’s board.
Shares of Office Depot rose 4 percent in premarket trading on Monday.
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Investment firm Starboard Value LP said that it sent a letter to Office Depot’s board. In the letter, Starboard said that it believes and “new and improved” board is needed at the chain to help improve its operating performance; select a CEO when Office Depot combines with OfficeMax Inc. and contribute the most highly-qualified board members possible to the combined company.
Boca Raton, Fla.-based Office Depot and Naperville, Ill.-based OfficeMax announced an agreement last month to combine in an all-stock deal worth about $1.2 billion.
Starboard said that if Office Depot doesn’t not immediately talk with them about making board changes, then it should schedule its annual shareholders meeting for a date prior to when the OfficeMax deal is expected to close so that Office Depot shareholders can pick who they want to represent them during these activities.
Starboard has a 14.8 percent ownership stake in Office Depot Inc. Its board nominees include: Orchard Brands CEO James P. Fogarty; Tractor Supply Co. board member Cynthia T. Jamison; XLR-8 founder and CEO Robert L. Nardelli; Frontier Airlines President and CEO David N. Siegel; Starboard’s co-founder, Chief Investment Officer and CEO Jeffrey C. Smith and Joseph S. Vassalluzzo, who is a director on a number of public company boards, including Federal Realty Investment Trust, Life Time Fitness and chairman of iParty Corp.
Office Depot’s stock added 16 cents to $4.17 before the market open. Shares of OfficeMax rose 37 cents, or 3.1 percent, to $12.14.
