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Non-Tech : Office Product Stocks - ODP/SPLS/OMX/VKNG/CEXP/OFIS/BOP
SPLS 10.250.0%Sep 28 5:00 PM EST
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To: Furry Otter who wrote (7)4/10/1997 12:43:00 AM
From: AL TOTH   of 297
 
FURRY-IMO, The biggest mistake ODP made when they did
acquisitions of distribution companies,was they were not interested in the management of the acquired company. ODP management has a retail
mentality and they are great retailers where people are not crucial
to your success i.e. that is why store clerks arent paid much.

However selling office products to businesses through distribution
companies is a people business. When a customer can select a
multitude of office product companies to buy from, their contact
with the company personnel is a big part of that decision. ODP
also carried this philosophy into its top management of the
distribution side by bringing in executives that had no office product
background. In summary it took a great retail operation and saddled
it with a ineffective distribution division.

SPLS on the other hand also is a great retailer that entered the
distribution side through acquisitions. However it kept the
acquired companies management and their experience and expertise
made the creation of this division much smoother. In essense that
is why SPLS is now the better company and the acquirer of ODP.

IMO if the merger is allowed,SPLS will go down in price slightly
in the short term because it will have to absorb ODP and its
problems. However the long term outlook should be excellent and
if they really wanted to increase their stock price, they should
sell their distribution business.

As far as CEXP, it has really complicated its operation with the
acquisition of the large delivery company and IMO I dont think
any of its competitors would want to acquire CEXP with that baggage.
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