Staples ups offer for Corporate Express

By Lisa Kerner

Charlotte, N.C., June 3 - Staples, Inc. increased its all-cash offer for Corporate Express NV to €9.15 per share, from €8.00, contingent upon Corporate Express' shareholders rejecting the company's €1.7 billion acquisition of Lyreco SAS.

Corporate Express said it will carefully review the new offer and make a further announcement in due course, according to a form 6-K filing with the Securities and Exchange Commission.

A Staples news release noted that shareholders holding 23.3% of Corporate Express' ordinary share capital committed to tendering their shares into Staples' offer and agreed to vote against the proposed Lyreco transaction.

"At our increased offer price, there is no question that Staples' offer is the superior choice for Corporate Express shareholders," Staples chairman and chief executive officer Ron Sargent said in the release.

"Staples' offer provides certain and immediate cash value, without the significant risks found in Corporate Express' long-term business plan, with or without Lyreco," Sargent added.

On May 13, Staples announced it was increasing its offer for Corporate Express to €8.00 per ordinary share from €7.25 and taking the offer directly to Corporate Express shareholders because the company refused to negotiate.

Staples Acquisition BV launched its tender offer on May 19, it was previously noted.

The acceptance period for the tender offer ends June 27.

In February, Corporate Express denied rumors that it was in discussions with Staples about a take-over. A few weeks later, Staples made an unsolicited €2.5 billion bid to acquire the company, which Corporate Express rejected.

Staples is an office superstore based in Framingham, Mass.

Corporate Express is a business-to-business office supply company based in Amsterdam.

Lyreco is a business-to-business office supply company based in Marly, France.

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