1 March 2005 – Itasca (IL): OfficeMax shareholder K Capital has disclosed that it has asked the retailer’s board of the directors to seek a break up or sale of the company through a filing with the Securities and Exchange Commission (SEC).
K Capital, which holds a 6.2 per cent stake, has claimed that the retailer’s intrinsic value is not reflected in its stock price and that it will continue to communicate with the company, industry observers and other companies about "possible strategic transactions".
Dan Binder, SVP at Buckingham Research group, told opi.net: "We suspect other large shareholders could support K Capital in its efforts to seek a sale or break up of OfficeMax, however, we are not sure if the board will be immediately receptive to this action."
But suggesting that the OfficeMax board "wouldn’t necessarily rule out a deal", he added: "we think Office Depot and Staples individually would be interested in the delivery business and pieces of OfficeMax real estate if they are sold off by major market."
