Activist investment fund Starboard Value grabbed a 13.3 percent stake in Office Depot Monday and laid out a series of changes the office products retailer can implement in order to become a more profitable company.
In a letter to Office Depot’s board, Starboard said it believes the retailer is “deeply undervalued” and a “substantial opportunity” now exists for the company to improve its performance andvaluation.
Reported by Roland Jones, NBC News, Starboard’s stock purchase makes it Office Depot’s largest common shareholder. It follows a number of similar bids by investors to boost the value of besieged bricks-and-mortar retailers.
Starboard, which is known for targeting smaller companies it thinks are undervalued, recently launched a campaign to revitalize former Internet giant AOL, pushing the company to change its strategy.