Office Depot Inc (NASDAQ:ODP) shares are down significantly today as investors remain unsure about a potential acquisition by Staples (NASDAQ:SPLS). Late last week, it was learned that Stapes was willing to sell some of their assets in order to win approval from the FTC for their $6.3 billion takeover of Office Depot Inc (NASDAQ:ODP). Now things are looking a bit blurry for investors who await a decision, hopefully by tomorrow.
Office Depot Inc (NASDAQ:ODP) investors are hesitant with a vote scheduled tomorrow, and the FTC giving a lot of criticism for allowing a move that would combine the two largest office supply retailers in the U.S.. Some experts are concerned about antitrust issues, rightfully so. Tomorrow is the scheduled deadline that the FTC has set to either approve or deny such a move.
Telling by the stock price, perhaps investors are feeling as though the deal will not be approved afterall.
The stock is down 10.32% or $0.69 following the news, hitting $5.95 per share. Approximately 5.04 million shares traded hands. ODP shares have declined 29.21% since May 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 28.13%.
The institutional sentiment decreased to 0.88 in Q2 2015. It’s down 0.03, from 0.91 in 2015Q1. The ratio dropped, as 46 funds sold all their Office Depot Inc shares they owned while 99 reduced their positions. 39 funds bought stakes while 88 increased their total positions. Institutions now own 469.99 million shares which is 4.41% less than the previous share count of 491.67 million in 2015Q1.
Starboard Value Lp holds 8.51% of its total portfolio in Office Depot Inc, equating to 43.55 million shares. Andromeda Capital Llc owns 400,000 shares representing 4.27% of their total US portfolio. Moreover, Manikay Partners Llc has 3.66% of their total portfolio invested in the company, equating to 7.50 million shares. The Connecticut-based Gendell Jeffrey L has a total of 3.58% of their portfolio invested in the stock. Eton Park Capital Management L.P., a New York-based fund reported 16.15 million shares owned.
Office Depot, Inc. is a supplier of office services and products. The company has a market cap of $3.63 billion. The Firm sells services and products to clients through three divisions: North American Retail Division, North American Business Solutions Division and International Division. It currently has negative earnings. The North American Retail Division sells an assortment of merchandise through its chain of office supply stores throughout the United States, including Puerto Rico and the U.S.