Private equity firm Sycamore Partners said it will buy U.S. office supplies chain Staples for $6.9 billion. Fred Katayama reports.
Private equity firm Sycamore Partners said it will buy Staples for $6.9 billion. That's $10.25 per share in cash, a premium of about 11 percent before traders learned of the deal Wednesday afternoon. Shares of Staples rose on the news. Decision Economics' Cary Leahey: (SOUNDBITE) CARY LEAHEY, SENIOR ADVISER AND CHIEF U.S. ECONOMIST, DECISION ECONOMICS (ENGLISH) SAYING: "The stock is up today on the on the belief that you have a new new management team, a new infusion of cash from a firm that knows the retail space and knows how to turn companies around." Sources told Reuters Sycamore will focus on Staples' delivery business, with an option to shed its retail business in the future. Staples has the largest share of office supply stores in the United States. It tried to merge with rival Office Depot but the deal was killed by antitrust concerns.