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OfficeMax deal canceled
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September 14, 1998: 11:56 a.m. ET
Office supplier ends merger talks and resumes stock buyback plan
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NEW YORK (CNNfn) - OfficeMax Inc. reported Monday that talks regarding a possible business combination have ended, prompting the company to resume its stock- repurchasing plan.
The office-supply retailer ceased its $200-million, stock-buyback program last week amid preliminary merger talks with an unnamed company.
Now that negotiations have ended, OfficeMax will immediately begin repurchasing stock in the open market. So far, the company has bought back 1.2 billion shares in a plan initiated Aug. 17.
While OfficeMax is not up for sale, the company said it was obligated to give consideration to an unsolicited proposal exploring a business combination, adding repurchasing stock in the midst of negotiations was "inappropriate."
After extensive review, the proposal was "not in the best interests" of OfficeMax shareholders and its employees, the company said.
"At this time, the best investment the company can make is in itself," Michael Feuer, the company's chairman and chief executive, said.
Shares of OfficeMax (OMX) dropped 15/16 to 9-7/8 early Monday. 
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OfficeMax
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