Even stranger in the face of recent news like this:
BOP is being "reclaimed" by their parent, I can only assume because they are way too cheap it makes sense to most any fool.
Boise Cascade says will buy Boise Cascade Office Products
BOISE, Idaho, Dec 1 (Reuters) - Wood products giant Boise Cascade Corp. (NYSE:BCC - news) said Wednesday it plans to buy the minority outstanding shares of Boise Cascade Office Products Corp. (NYSE:BOP - news) for $13.25 per share in cash as part of a strategic effort to increase shareholder value.
Boise Cascade currently owns 81.2 percent of the outstanding shares of Boise Cascade Office Products, which said it would form a special committee to evaluate the offer.
Boise Cascade Office Products shares closed at 11-1/2 and Boise Cascade Corp. shares closed at 34-5/8 on Tuesday.
``We view the acquisition of BOP's minority shares as an attractive investment that is consistent with our focus on growing the distribution side of our company. We expect the transaction to be accretive to earnings and enhance economic value added over time,' Boise Cascade's chairman of the board and chief executive officer George Harad said.
Wednesday's announcement is part of a strategic initiative to increase shareholder value, the company said, including the evaluation of alternatives for its DeRidder, La., pulp and paper mill and seven corrugated container facilities and the improvement of the company's financial position.
``We are reviewing strategic alternatives for our DeRidder, La., paper mill and seven box plants with the intent to redeploy capital from those facilities into our growing distribution businesses,' Harad said.
``We are also considering reducing debt and/or returning cash directly to shareholders,' he added.
Boise Cascade Corp. is a major distributor of office products and building materials and an integrated manufacturer and distributor of paper and wood products. Boise Cascade Office Products is a worldwide distributor of products that include office and computer supplies.
biz.yahoo.com
BCOP was a division of Boise Cascade until 1995, when about 19 percent of the company's outstanding shares were sold to the public.
``In 1995, when we sold Boise Cascade Office Products, the industry was doing very well. And because we wanted to expand their (BCOP) business, we wanted them to have access to the capital markets. We wanted to raise some capital so that (BCOP) could use that money to make acquisitions,' Moser told Reuters in a telephone interview.
``In today's market there is a total different scenario. For one, there are not as many acquisitions as five years ago, and growth has slowed down. Boise Cascade Office Products stock is not fully valued today, so we thought it would be better to have them as a fully-owned subsidiary again,' he said. |
