Newman Ferrara LLP Announces Investigation of OfficeMax Incorporated
21 February 2013 - 3:42AM
Business Wire
Newman Ferrara LLP has begun an investigation into potential
claims against the board of directors of OfficeMax Incorporated
(“OfficeMax”) (NYSE: OMX) concerning the proposed acquisition of
OfficeMax by competitor Office Depot, Inc. (“Office Depot”) (NYSE:
ODP).
On February 20, 2013, OfficeMax announced that it had entered
into a definitive merger agreement to be acquired by Office Depot
in an all-stock transaction. Under the terms of the merger
agreement, OfficeMax shareholders will receive 2.69 shares of
Office Depot common stock for each share of OfficeMax common stock
owned.
The proposed deal has been reported to provide OfficeMax
shareholders with consideration valued at $13.50 per share of
OfficeMax stock owned, based on the closing price of OfficeMax
stock on February 19, 2013, the day before the deal was announced.
However, based on Office Depot’s 30-day average closing price prior
to the deal’s announcement of $4.28 per share, 2.69 shares of
Office Depot stock would only be valued at $11.50 per share. As of
September 12, 2012, OfficeMax had a tangible book value of
approximately $12.10 per share.
Newman Ferrara LLP’s investigation concerns whether OfficeMax’s
Board of Directors has breached its fiduciary duties to act in the
best interests of OfficeMax’s shareholders. The investigation
focuses on the potential unfairness of the consideration being
provided to OfficeMax’s shareholders and the process by which
OfficeMax’s Board of Directors considered and approved the proposed
deal.
Concerned investors may contact Newman Ferrara attorney Roy
Shimon at (212) 619-5400 or rshimon@nfllp.com to discuss this
investigation, their rights, or potential remedies.
Newman Ferrara maintains a multifaceted practice based in New
York City with attorneys specializing in complex commercial and
multi-party litigation, securities fraud and shareholder
litigation, consumer protection, civil rights, and real estate. For
more information, please visit the firm website at
www.nfllp.com.
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