Starboard Buys Staples Stake, Ups Office Depot Holding

Starboard Value CEO Jeffrey Smith is considering a merger between Staples and Office Depot. Starboard has acquired a 5% stake in Staples and increased its stake in Office Depot to nearly 10%. The company believes these shares are undervalued and the industry is under pressure to consolidate. Staples and Office Depot face competition from major retailers like Amazon, Walmart, and Target, which offer office supplies at discounted prices.

What is the potential reason for the merger between Staples and Office Depot?

What does Starboard say about the shares of Staples and Office Depot?