B Riley & Co Analyst Scott Tilghman: Staples CEO Has Been Public About Dislike For Office Depot

When asked about the possibility of Starboard Value seeking a merger between Staples, Inc. SPLS and Office Depot Inc ODP, B Riley & Co Analyst Scott Tilghman told Benzinga that Staples management, and its CEO especially, has been public about its dislike for Office Depot.

“In all fairness, Office Depot is a company that grew through acquisition over the years, so you had a lot of infrastructure that was band-aided together,” he said.

Tilghman explained that Staples believes it has commanding market share and better margin structure.

But he thinks Office Depot CEO Roland Smith and his team have been active in improving all aspects of the business, so the timing might be good as far as putting the two companies together.

The challenge would be getting past the Staples board, Tilghman pointed out.