Staples: to be taken private in 6.9 billion dollars deal.

(CercleFinance.com) - US investment firm Sycamore Partners said on Wednesday that it would buy Staples in a deal valued at around 6.
9 billion dollars.

Under the terms of the agreement, the US office product retailer's shareholders will receive 10.25 dollars per share in cash for each common share they hold.

The shares are currently up 2.1% at 10.14 dollars in morning trading on the New York Stock Exchange.

"We think it makes total sense for Staples to be taken private," analysts at Credit Suisse commented this morning, who have a "neutral" rating on the stock.

"We think it needs to address the optics of its price gap with the online competition, rationalize its store base, reaccelerate growth, and ensure it has the cost structure to be well positioned for the long run," the brokerage firm explains.

Credit Suisse says that being a privately held company will enable the company to take actions that will lead "to the best outcomes over the long-term."

Copyright (c) 2017 CercleFinance.com. All rights reserved.