Corporate Express deal could thwart Staples

The office supplies distributor Corporate Express NV made a surprise move to thwart a hostile takeover by Framingham-based Staples Inc. today, unveiling plans to buy French rival Lyreco SAS for about $2.7 billion.

If approved by shareholders and regulators, the combination would create a sizable international competitor to Staples, one that is larger in business-to-business sales in the United States, Europe, and Asia.

Corporate Express’ board rejected a $2.47 billion takeover offer from Staples last week, saying it undervalued the company.

‘‘Would we have done this deal if Staples hadn’t made their bid?’’ CEO Peter Ventress said on a conference call. ‘‘The answer is absolutely yes. This is the most compelling, the most logical merger in our industry.’’

The Dutch company said both its own and privately held Lyreco’s boards support the new deal.

Staples said in a statement today that its bid ‘‘delivers certain, immediate and superior value to Corporate Express shareholders ... without the substantial execution and other risks inherent in Corporate Express’ long-term plans, with or without the addition of Lyreco.’’

On Tuesday, CEO Ron Sargent suggested Staples had no plans to raise its bid.

Anthony Chukumba, an analyst with FTN Midwest Securities, said Corporate Express shareholders now face a tough choice in deciding whether they’ll get a greater return from their shares from the Lyreco deal or from Staples’ offer.

The deal announced today contains a $47 million breakup fee for Lyreco in case it falls through.
(AP)