Office romance

20 February 2008 By George Hay Follow @gfhay

The US office supplies firm wants to expand its fastestgrowing sector by snapping up a Dutch rival. It s been rebuffed, but even a pricier offer could work out. There are big synergies in the US and Corporate Express is poorly placed to withstand much weakness in the US economy.

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Corporate Express has rejected an E7.25ashare offer from US office supplies firm Staples. The Dutch office supplier said the bid, which valued it at E2.5bn, significantly undervalued the company.

Staples published a letter sent to Peter Ventress, chief executive of Corporate Express, which revealed it had tried to meet the Dutch firm for talks at several points over the last few months.

Dutch analyst Petercam estimates the deal could create US synergies of 1.5% of North American sales and 0.5% rest of the world. That could contribute E60m by 2010.

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