A report that several private equity firms -- including original investor
Acquisition talks are still preliminary and any offer likely won't come until later this year, according to a report by Fortune citing unnamed sources familiar with the situation.
The size of the deal would be so large, based on Staples' roughly $8-billion market cap, that at least three firms would have to join forces to come up with the needed investment, according to Fortune. And potential owners are wary of attracting too much attention by bidding for a company with ties to a presidential candidate just before the election.
Now Staples employs nearly 90,000 people and has more than 2,000 stores, Stemberg said.
Neither Framingham, Mass.-based Staples nor Bain Capital could immediately be reached for comment.
In Staples' second quarter, which ended July 28, Chief Executive Ron Sargent said results "fell short of our expectations due to softer than expected sales trends in North America and ongoing weakness in Europe and Australia."
Sectors such as computers and core office supplies were weak, he said. The company said it was adopting a more conservative sales and earning outlook and planned to make "significant changes to improve results."
Net income slipped to $120.4 million, or 18 cents a share, from $176.4 million, or 25 cents a share a year earlier, a 31.7% decline. Sales dipped 5.5% to $5.5 billion.
On Friday, office supply rivals were enjoying a stock boost on Staples’ tail.