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  "documentTitle": "Office Depot, Inc. (ODP)",
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  "authorName": "Starboard Value",
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  "presentationDate": "2013-08-02 00:00:00",
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  "notes": "Uses a narrative structure to expose board entrenchment tactics.",
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      "text": "We are concerned that the Board’s actions were not only self-serving but also directly adverse to the best interests of shareholders and their ability to elect directors.",
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      "text": "The cumulative effect of the Poison Pill would have allowed BC Partners to increase its ownership to over 25% by the time of the Annual Meeting, if it were held prior to the redemption of half of BC Partners’ preferred stake, which would have diluted a 15% common stock owner to only 11.5% voting power in an election contest.",
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      "text": "Allowed for an exemption for BC Partners to acquire an additional 2% of the outstanding common stock on top of the in-kind dividend payments.",
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      "text": "Continued to allow the Company to pay BC Partners dividends in-kind, thereby increasing the ownership and voting power of BC Partners, which the Board effectively controls.",
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      "text": "At the time, the Board effectively controlled 22% of the Company’s voting power in an election contest through the preferred stake of BC Partners.",
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      "text": "However, we believe this action was an exceedingly transparent attempt to cap Starboard’s ownership at its current position and limit the voting ability of shareholders, especially given that the previous Poison Pill which had expired in 2006 had an ownership limit of 20%, not the new 15% threshold.",
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      "text": "Furthermore, the way the Poison Pill is structured to operate in combination with the voting arrangement with BC Partners is even more troubling. In addition to capping shareholders’ economic interest to 15%, the Board also:",
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      "text": "The Board claimed that it was instituting the Poison Pill to protect the Company against “hostile acquirors.”",
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      "text": "On October 24, 2012, only days after Starboard had amended its 13D filing disclosing a 14.8% ownership position in Office Depot, the Company unilaterally instituted a Poison Pill with a 15% ownership threshold without shareholder approval.",
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      "text": "The Current Board has Sought to Entrench Itself by Instituting a Poison Pill with a 15% Ownership Threshold",
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