Activist investor Jeffrey Smith of Starboard, which owns 4.5% of Staples and has increased its stake of Office Depot by 10% recently, is confident the merger proposal between the two companies will go through, although the FTC is asking for additional information, according to Reuters.
Smith already has his eyes on a merger between Yahoo and AOL after the former finishes selling its stake in Alibaba. Starboard also has a significant number of shares in Yahoo.
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Both Staples and Office Depot were issued a request from the FTC for more elucidation regarding the merger proposal. Such a move is called a “second request.” This second request was issued under the Hart-Scott-Rodino Antitrust Improvements Act, and the effect is to extend the waiting period until 30 days after the companies have given the information. Both companies agreed to submit the information, and if the merger is approved, it may be completed by the end of 2015.
