The collapse of the questionable merger with Office Depot (NASDAQ: ODP) makes Staples (NASDAQ: SPLS) a potential value investment. The office supply retailer has some interesting attributes that its rival lacks.
The merger plans were dropped; after a federal judge issued an injunction blocking the deal on May 10. The injunction was issued at the request of the Federal Trade Commission, which felt the deal would violate antitrust laws.
Observers; such as myself, felt that the merger was really an attempt to save the dying Office Depot from a changing market and mismanagement. Now that the deal is off, Office Depot should die a natural death; but Staples might live on and produce some value.
