Forum Archive Index - May 2000

[Mike Hudson <MHudson@placemakers.co.nz>]

Simon wrote
"Stuart,One front runner to buy Blue Star would definitely be....yes, you've
guessed it....our friend Eric Watson and his PRG group!"

I don't know how keen US Office Products, the owners of Blue Star, would be
to get involved with friend Eric again. Their previous experiences have cost
them dear although to be fair it's not all down to Eric.

The shares in OFIS are now down to below US$1 from US$100 plus in 1997. The
whole company now has a market cap of about US$30, so it would be cheaper to
buy the parent than the subsidiary, although much riskier as the company
lost US$200m in the year to April 1999 and US$107m in the nine months to
January 2000.

 Might be a better punt than some of the NZ penny dreadfuls though.

Here is the US Office Products press release.

US Office Products Exploring Strategic Options for Blue Star Consumer
Retailing
Business Operates the Largest Bookstore Chains in New Zealand, Australia
WASHINGTON--(BUSINESS WIRE)--May 24, 2000--US Office Products Company
(NASDAQ: OFIS <http://finance.yahoo.com/q?s=ofis&d=t>  - news
</n/o/ofis.html> ) today announced that it has begun to explore strategic
options for its Blue Star retail book and stationery business in New Zealand
and Australia. 
The investment bank of Credit Suisse First Boston has been retained to
assist in the process. 
``We have been approached a number of times over the past several years by
parties interested in acquiring Blue Star's retail group,'' said Warren D.
Feldberg, President and Chief Executive Officer of US Office Products.
``This is a very valuable business with a strong brand identity. However, it
is not a core part of our operations. Therefore, consistent with our
strategy of seeking to realize value from non-core businesses, we are
assessing the possibility of a sale of all or a portion of the retail
business. We also think such a transaction could enhance the future
prospects for the retail business.'' 
Blue Star Consumer Retailing operates 250 locations in Australasia. This
includes Angus & Robertson Bookworld, the largest bookstore chain in
Australia, with 159 stores, including 64 franchise outlets, nationwide. 
Blue Star also is the leading retail bookseller and stationer in New
Zealand, with a total of 91 stores throughout that country, including 63
stores operating under the well-known Whitcoulls name. 
``We anticipate a wide range of potential bidders within New Zealand and
worldwide,'' said Tom Sturgess, Chief Executive Officer of Blue Star. ``Blue
Star Consumer Retailing is a world-class retailer with strong brand icons, a
very successful management team, a growing set of e-commerce alliances, and
excellent opportunities for expansion.'' 
US Office Products is one of North America's leading providers of office
supplies, office furniture, and office coffee and vending services. The
Company also owns Mail Boxes Etc., the world's largest franchiser of
business, communications and postal service centers, with more than 4,100
locations in 29 countries around the world. 
In addition, US Office Products owns Blue Star Group Limited, a leading
supplier of office products and business services in New Zealand and
Australia, and a 49% interest in Dudley Stationery Limited, the second
largest contract stationer in the United Kingdom. The Company's corporate
web site address is www.usofficeproducts.com
<http://www.usofficeproducts.com> . 

 Cheers
Mike  



----------------------------------------------------------------------------
http://www.sharechat.co.nz/          New Zealand's home for market investors
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/forum.shtml.