Nov 16 Activist hedge fund Starboard Value asked
Office Depot Inc to immediately revoke its "poison pill"
provision, claiming it limited the influence of shareholders.
In September, Starboard said it took a 13.3 percent stake in
Office Depot, the No. 2 U.S. office supply retailer, making it
the biggest shareholder in the company. On Friday, the hedge
fund said it owned a 14.8 percent stake.
"We believe the implementation of the poison pill, with a
threshold just above our current ownership, is designed
specifically to entrench the current board," Starboard said in a
letter to the board.
Office Depot has been facing tough competition from other
office products suppliers as well as mass merchants and
Sales at office supply retailers have suffered as corporate
customers and other shoppers cut back on discretionary spending
in the weak global economy.
Same-store sales at Office Depot's 1,090 North American
stores fell 4 percent in the third quarter.
Office Depot shares closed at $2.96 Thursday on the New York