Staples Inc. showed investors Wednesday that persistence pays off. The office retailer's third bid for Corporate Express NV was accepted, topping a flurry of deal-related activity on Wednesday. Overall, however, deal activity was overshadowed by the black cloud of the rising cost of oil, which dragged down the Dow 136.62, or 1.11%, to 12,162.50, while the Nasdaq fell 27.92, or 1.14%, to 2,421.02.
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Shares of Staples [SPLS] jumped $1.06, or 4.62%, to $24.22 on news of the office retailer's wrap-up of its pursuit of Corporate Express [CXP] for €3.1 billion ($4.8 billion). The Framingham, Mass.-based company sweetened its offer to €9.25 a share, or €1.68 billion in total, from €9.15. The new offer is 28% above Staples' initial bid in February.
Meanwhile, Carl Icahn and Yahoo! Inc. [YHOO] continue to squabble about the path the Internet giant is taking. The Wall Street Journal reported Wednesday that Icahn and Yahoo! differ sharply in opinion on estimates of the cost of a severance plan that the Internet services giant has put in place. Icahn is a big proponent of Yahoo! merging with Microsoft Corp.
Lastly, Berry Petroleum Co. [BRY] purchased natural gas properties in East Texas from a group of private sellers for $620 million. Despite the sale, shares of Berry decreased 15 cents, or .26%, to $55.23. Berry has been on a strong uptick lately, reaching a recent high of $58 on June 6. The company has been mentioned as a takeover target partly because many feel the company is undervalued. The addition will give the company reserves of 50% crude oil and 50% natural gas with 43% of its reserve base in California, 34% in the Rockies and 23% in East Texas. - Gerald Magpily
