The following constitutes Amendment No. 4 to the Schedule 13D filed by the undersigned (the “Amendment No. 4”). This Amendment No. 4 amends the Schedule 13D as specifically set forth herein.
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Item 3.
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Source and Amount of Funds or Other Consideration.
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Item 3 is hereby amended to add the following:
The Shares owned by Mr. Vassalluzzo were purchased with personal funds in open market purchases, except as otherwise noted, as set forth in Schedule A, which is incorporated by reference herein. The aggregate purchase price of the 12,000 Shares beneficially owned by Mr. Vassalluzzo is approximately $39,650, excluding brokerage commissions.
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Item 4.
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Purpose of the Transaction.
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Item 4 is hereby amended to add the following:
On February 27, 2013, Starboard delivered a letter to the Board of Directors of the Issuer (the “Board”). In the letter, Starboard restated its belief that the significant value of the Issuer’s 50% joint venture interest in Office Depot de Mexico (the “JV Interest”) is not fully reflected in the stock price of the Issuer. Starboard noted that, on February 15, 2013, the Board received an offer from its joint venture partner, Grupo Gigante S.A.B. de C.V. (“Gigante”), to purchase the JV Interest for $690.5 million. Starboard noted further that Gigante’s offer expires on February 28, 2013, and, as such, Starboard believes the Board should promptly obtain consent from OfficeMax Incorporated (“OfficeMax”) under the agreement and plan of merger with OfficeMax, dated February 20, 2013 (the “Merger”), to immediately explore a sale of the JV Interest to maximize value for shareholders. Starboard stated in the letter it believes it is the Board’s fiduciary duty to monetize the Issuer’s interest in the joint venture given the clear benefit to both the Issuer and OfficeMax as a combined company and the Issuer as a stand-alone company. Starboard stated further that it recognizes OfficeMax is potentially conflicted as a sale of the JV Interest, while beneficial to the combined company, would also be beneficial to the Issuer as a stand-alone business and, therefore, may strengthen a competitor should the Merger not be completed. Starboard notes that if OfficeMax does not consent to the Issuer’s negotiations with Gigante or any other potential buyer regarding the sale of the JV Interest, Starboard would view this as both unreasonable and potentially anti-competitive.
The full text of the letter is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Starboard intends to continue to engage in discussions with management, the Board and shareholders of the Issuer regarding representation on the Issuer’s Board.
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Item 5.
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Interest in Securities of the Issuer.
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Items 5(a) - 5(c) are hereby amended and restated to read as follows:
The aggregate percentage of Shares reported owned by each person named herein is based upon 285,522,659 Shares outstanding, as of January 26, 2013, which is the total number of Shares outstanding as reported in the Issuer’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 20, 2013.
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(a)
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As of the close of business on February 26, 2013, Starboard V&O Fund beneficially owned 12,711,135 Shares.
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Percentage: Approximately 4.5%
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(b)
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1. Sole power to vote or direct vote: 12,711,135
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 12,711,135
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Starboard V&O Fund has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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As of the close of business on February 26, 2013, Starboard LLC beneficially owned 2,829,381 Shares.
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Percentage: Approximately 1.0%
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(b)
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1. Sole power to vote or direct vote: 2,829,381
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 2,829,381
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Starboard LLC has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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As of the close of business on February 26, 2013, 26,559,484 Shares were held in the Starboard Value LP Accounts. Starboard Value LP, as the investment manager of Starboard V&O Fund and the Starboard Value LP Accounts and the manager of Starboard LLC, may be deemed the beneficial owner of the (i) 12,711,135 Shares owned by Starboard V&O Fund, (ii) 2,829,381 Shares owned by Starboard LLC and (iii) 26,559,484 Shares held in the Starboard Value LP Accounts.
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Percentage: Approximately 14.7%
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(b)
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1. Sole power to vote or direct vote: 42,100,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 42,100,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Starboard Value LP has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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Starboard Value GP, as the general partner of Starboard Value LP, may be deemed the beneficial owner of the (i) 12,711,135 Shares owned by Starboard V&O Fund, (ii) 2,829,381 Shares owned by Starboard LLC and (iii) 26,559,484 Shares held in the Starboard Value LP Accounts.
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Percentage: Approximately 14.7%
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(b)
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1. Sole power to vote or direct vote: 42,100,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 42,100,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Starboard Value GP has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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Principal Co, as a member of Starboard Value GP, may be deemed the beneficial owner of the (i) 12,711,135 Shares owned by Starboard V&O Fund, (ii) 2,829,381 Shares owned by Starboard LLC and (iii) 26,559,484 Shares held in the Starboard Value LP Accounts.
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Percentage: Approximately 14.7%
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(b)
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1. Sole power to vote or direct vote: 42,100,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 42,100,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Principal Co has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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Principal GP, as the general partner of Principal Co, may be deemed the beneficial owner of the (i) 12,711,135 Shares owned by Starboard V&O Fund, (ii) 2,829,381 Shares owned by Starboard LLC and (iii) 26,559,484 Shares held in the Starboard Value LP Accounts.
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Percentage: Approximately 14.7%
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(b)
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1. Sole power to vote or direct vote: 42,100,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 42,100,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Principal GP has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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G.
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Messrs. Smith, Mitchell and Feld
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(a)
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Each of Messrs. Smith, Mitchell and Feld, as a member of Principal GP and as a member of each of the Management Committee of Starboard Value GP and the Management Committee of Principal GP, may be deemed the beneficial owner of the (i) 12,711,135 Shares owned by Starboard V&O Fund, (ii) 2,829,381 Shares owned by Starboard LLC and (iii) 26,559,484 Shares held in the Starboard Value LP Accounts.
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Percentage: Approximately 14.7%
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(b)
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1. Sole power to vote or direct vote: 0
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2. Shared power to vote or direct vote: 42,100,000
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3. Sole power to dispose or direct the disposition: 0
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4. Shared power to dispose or direct the disposition: 42,100,000
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(c)
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None of Messrs. Smith, Mitchell or Feld has entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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As of the close of business on February 26, 2013, T-S Capital beneficially owned 100,000 Shares.
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Percentage: Less than 1%
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(b)
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1. Sole power to vote or direct vote: 100,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 100,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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T-S Capital has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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I.
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Messrs. Siegel and Telles
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(a)
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Each of Messrs. Siegel and Telles, as a managing member of T-S Capital, may be deemed the beneficial owner of the 100,000 Shares owned by T-S Capital.
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Percentage: Less than 1%
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(b)
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1. Sole power to vote or direct vote: 0
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2. Shared power to vote or direct vote: 100,000
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3. Sole power to dispose or direct the disposition: 0
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4. Shared power to dispose or direct the disposition: 100,000
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(c)
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Neither of Messrs. Siegel or Telles has entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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(a)
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As of the close of business on February 26, 2013, Mr. Vassalluzzo beneficially owns 12,000 Shares.
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Percentage: Less than 1%
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(b)
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1. Sole power to vote or direct vote: 12,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 12,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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The transactions in the Shares by Mr. Vassalluzzo since the filing of Amendment No. 3 to the Schedule 13D are set forth in Schedule A and are incorporated herein by reference.
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(a)
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As of the close of business on February 26, 2013, Mr. Nardelli beneficially owned 66,000 Shares.
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Percentage: Less than 1%
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(b)
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1. Sole power to vote or direct vote: 66,000
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2. Shared power to vote or direct vote: 0
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3. Sole power to dispose or direct the disposition: 66,000
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4. Shared power to dispose or direct the disposition: 0
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(c)
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Mr. Nardelli has not entered into any transactions in the Shares since the filing of Amendment No. 3 to the Schedule 13D.
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An aggregate of 42,278,000 Shares, constituting approximately 14.7% of the Shares outstanding, are reported in this Amendment No. 4.
Each Reporting Person, as a member of a “group” with the other Reporting Persons for the purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, may be deemed the beneficial owner of the Shares directly owned by the other Reporting Persons. Each Reporting Person disclaims beneficial ownership of such Shares except to the extent of his or its pecuniary interest therein.
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Item 7.
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Material to be Filed as Exhibits.
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Item 7 is amended to add the following exhibit:
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99.1
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Letter to the Board of Directors, dated February 27, 2013.
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SCHEDULE A
Transactions in the Shares Since the Filing of Amendment No. 3 to Schedule 13D
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Shares of Common Stock
Purchased/Sold
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Price Per
Share($)
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Date of
Purchase
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JOSEPH VASSALLUZZO
SIGNATURES
After reasonable inquiry and to the best of his knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.
Dated: February 27, 2013
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STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD
By: Starboard Value LP,
its investment manager
STARBOARD VALUE AND OPPORTUNITY S LLC
By: Starboard Value LP,
its manager
STARBOARD VALUE LP
By: Starboard Value GP LLC,
its general partner
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STARBOARD VALUE GP LLC
By: Starboard Principal Co LP,
its member
STARBOARD PRINCIPAL CO LP
By: Starboard Principal Co GP LLC,
its general partner
STARBOARD PRINCIPAL CO GP LLC
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By:
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Name:
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Jeffrey C. Smith
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Title:
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Authorized Signatory
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JEFFREY C. SMITH
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Individually and as attorney-in-fact for Mark R. Mitchell, Peter A. Feld, T-S Capital Partners, LLC, David Siegel, Robert Telles, Joseph S. Vassalluzzo and Robert L. Nardelli
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