Staples merger unlikely after judge blocks Sysco/US Foods union

The proposed $6.3 billion merger of Staples and Office Depot became less likely Tuesday afternoon after a federal judge blocked food service distributor Sysco’s merger with US Foods, sources told The Post.

The deals have similar characteristics and the judge upholding the Federal Trade Commission’s suit to block Sysco may give regulators confidence to also stop Staples.

Judge Amit Mehta ruled to halt the $8.2 billion Sysco merger temporarily until a full trial is held. But US Foods already said it would not extend the merger agreement if it were halted — even temporarily.

In February, the FTC — by a 3-2 margin — sued to stop the deal, claiming the merger of the only two national food service providers to restaurants, schools and hospitals would result in higher prices.

Sysco argued unsuccessfully that customers could get many of its goods from other sources, and the food service industry was regional in nature.

Staples, like Sysco in food service, is proposing combining the country’s two largest — and, arguably, only national — players. It is making a case about office supplies similar to what Sysco made about food products.

Yet Staples has customers that buy its products on a national basis. And Staples is seen as offering lower prices than regional firms.

The FTC is expected to rule on the Staples merger in the fourth quarter.

Original article by Josh Kosman

Office Depot’s Shareholders Rubber Stamp Staples Buyout

Office Depot Inc. shareholders yesterday overwhelmingly voted in favor of a $6.3 billion acquisition by Framingham’s Staples Inc., paving the way for the union of the nation’s No. 2 and No. 1 office supplies chains, pending federal antitrust regulatory approvals.

Office Depot said a preliminary vote count after its shareholders meeting in its hometown of Boca Raton, Fla., pointed to 99.5 percent approval of the deal, which Staples expects to close by the end of the year.

“We’re pleased that Office Depot shareholders have overwhelmingly approved this transaction,” Staples chairman and CEO Ron Sargent said in a statement. “The combined company will allow us to provide more value to customers and more effectively compete in a rapidly evolving environment.”

The companies, which have 3,200 U.S. stores between them, are struggling to compete against online rivals such as Amazon.com and big-box stores such as Walmart and Target. As demand has dwindled for traditional office supplies such as paper, printers and toner, Staples and Office Depot have been expanding their merchandise categories and beefing up their e-commerce businesses.

Office Depot shareholders would receive $7.25 in cash and 0.2188 of a share in Staples stock for each Office Depot share under the deal terms. That’s a 
44 percent premium to Office Depot’s closing share price on Feb. 2, before the Wall Street Journal reported that the companies were in merger discussions.

The American Postal Workers Union yesterday held a press conference outside the Office Depot shareholders meeting to outline why it’s against the sale. The union has filed its opposition with the U.S. Federal Trade Commission, arguing the merger would create an office-supplies superstore monopoly and allow the combined company to charge higher prices. It previously mounted a boycott campaign against Staples for its deal to sell U.S. Postal Service products and shipping in its stores.

But analysts and both companies expect the FTC to sign off on the deal. Sargent, during an earnings call last month, said Staples had finalized its debt financing with lenders for the purchase, and the deal was “right on track” for completion by year’s end.

Staples this month received regulatory approvals for the deal from New Zealand and China. It also needs regulatory approvals from the European Union, Canada and Australia.

LinkedIn Reaches $13M Email Harvesting Class Action Settlement

LinkedIn Corp. informed a California federal court that the company had agreed to a $13 million email harvesting class action settlement, which claims the online networking website violated users’ privacy by accessing their email accounts to send out LinkedIn invitations to potential members.

Under the terms of the proposed LinkedIn email harvesting class action settlement, LinkedIn will set up a $13 million settlement fund to compensate eligible email harvesting Class Members. Additionally, the company will add more detailed Add Connections feature disclaimers and allow LinkedIn users to withdraw their consent to let the networking site send LinkedIn emails to their contacts.

Class Members of the LinkedIn email harvesting class action settlement are defined as: “[A]ll current and former LinkedIn members who used Add Connections to import information from external email accounts and to send emails to persons who were non-members in which the member’s name, photograph, likeness and/or identity was displayed between September 17, 2011 and October 31, 2014.”

Qualifying email harvesting Class Members would have 60 days after the final approval of this LinkedIn class action settlement to submit completed claim forms to the claims administrator in order to receive their portion of the settlement fund.

The plaintiffs of this email harvesting class action lawsuit originally filed their complaint in September 2013, claiming the Add Connections feature of the networking website allows the company to access users’ contacts and send emails to these contacts on users’ behalf. These email blasts allegedly advertise LinkedIn’s services to non-members without users’ express consent.

LinkedIn filed a motion to dismiss the email harvesting class action lawsuit filed against them, arguing that all LinkedIn members consent to the alleged email harvesting practice when they sign up for the networking website. The LinkedIn email harvesting class action lawsuit survived this proposed dismissal, though the plaintiffs were required to amend some claims.

The company attempted to dismiss the class action lawsuit against them a second time in 2014, but this request was also denied by U.S. District Judge Lucy H. Koh, who also refused to grant the networking website immunity.

Finally, in February of this year, LinkedIn informed the court that the company was close to reaching a settlement with the plaintiffs of the email harvesting class action lawsuit. Talks for the class action settlement had begun back in August and seemed to be almost ironed out by the time the company informed the court of this development.

If the payment for each LinkedIn email harvesting Class Members falls below $10, the company has agreed to pay an additional $750,000. Furthermore, if the number of claims received for this LinkedIn settlement result in economically unrealistic splitting and distributing of the email harvesting settlement fund, then the settlement money will be given to Access Now and Electronic Privacy Information Center and the Network for Teaching Entrepreneurship.

The plaintiffs are represented by Dorian S. Berger and Daniel P. Hipskind of Olavi Dunne LLP, Larry C. Russ of Russ August & Kabat, and Michael W. Sobol, Nicholas R. Diamand and Melissa Gardner of Lieff Cabraser Heimann & Bernstein LLP.

The LinkedIn Email Harvesting Class Action Lawsuit is Perkins, et al. v. LinkedIn Corporation, Case No. 5:13-cv-04303, in the U.S. District Court for the Northern District of California.

Fuji Xerox Announces the Appointments of Directors and Corporate Auditors, and Responsibility Changes of its Corporate Officers

Fuji Xerox Co., Ltd. announces the following appointments of directors and corporate auditors decided at its Annual General Meeting of Shareholders and Meeting of the Board of Directors held today. The Company also announces changes in corporate officers’ responsibilities effective July 1.

In order to be acknowledged as a true excellent company that meets customers’ business challenges and helps them create values in the field of Document Services and Communications, Fuji Xerox must accelerate the transformation of its business structure to that centered on solutions and services, as well as to achieve world-class cost and corporate competitiveness. As such, Fuji Xerox has renewed its management structure to clarify the roles and responsibilities between corporate management and business execution per described below.

Changes in directors, effective June 16 (changes are underlined)

Name	New duties	Previous duties
Tadahito Yamamoto	Chairman of the Board and Representative Director, Fuji Xerox	President and Representative Director, Fuji Xerox
Hiroshi Kurihara	President and Representative Director, Fuji Xerox	Executive Vice President and Director, Fuji Xerox

Newly appointed corporate auditor, effective June 16 (changes are underlined)

Name	New duty	Previous duty
Keiji Somata	Full-time Corporate Auditor , Fuji Xerox	Corporate Vice President, Fuji Xerox

Retired auditor, effective June 16

• Takeshi Hibiya (To be appointed to Adviser, Fuji Xerox, as of June 17)

Directors

Chairman of the Board and Representative Director	Tadahito Yamamoto	Reappointed
President and Representative Director	Hiroshi Kurihara	Reappointed
Deputy President and Representative Director	Haruhiko Yoshida	Reappointed
Director	Hitoshi Fujiwara	Reappointed
Director	Katsuhiko Yanagawa	Reappointed
Director	Masataka Jo	Reappointed
Director	Toru Yamada	Reappointed
Director	Shigetaka Komori	Reappointed
Director	Shigehiro Nakajima	Reappointed
Director	Ursula M. Burns	Reappointed
Director	James A. Firestone	Reappointed
Director	Kazimierz J. Herchold	Reappointed

Corporate Auditors

Full-time Corporate Auditor	Keiji Somata	Newly Appointed
Full-time Corporate Auditor	Koichi Tsukamoto
Corporate Auditor	Kouichi Tamai
Corporate Auditor	Tetsuya Shiokawa

Changes in Title/Responsibilities of Corporate Officers, Effective July 1 (changes are underlined)

Name	New duties	Previous duties
Katsuhiko Yanagawa	Executive Vice President,oversees overall Fuji Xerox headquarters operations, informatization strategy, companywide process innovation, and unity of word and deed (Genko-Itchi) promotion	Executive Vice President,oversees overall Fuji Xerox headquarters operations
Masaki Okano	Senior Vice President,responsible for domestic sales businessses and solutions and services operations	Senior Vice President,responsible for Solutions and Services Operations
Ryoichi Tsuruoka	Corporate Vice President,responsible for overall manufacturing technology and Executive General Manager of Production Technology Group	Corprate Vice President,responsible for marking platform technology development, device development, as well as Executive General Manager of Device Development Gruop
Toshiharu Yoneyama	Corporate Vice President,responsible for solutions and services marketing and Executive General Manager of Solution Sales & Marketing Group	Corporate Vice President,President and Representative Director of Fuji Xerox Nishinihon Co., Ltd.
Keiichiro Kawamoto	Corporate Vice President (newly appointed), responsible for overall finance and accounting , as well as General Manager of Corporate Finance	General Manager,Corporate Finance
Yoshihito Sekikawa	Corporate Vice President (newly appointed), responsible for marking platform technology development, device development , as well as Executive General Manager of Device Development Group	General Manager,Imaging Platform Development, Device Development Group
Chiaki Suzuki	Corporate Vice President (newly appointed), responsible for marking materials techonlogy as well as Executive General Manager of Marking Material Technology Group	General Manager,Chemicals Technology Development, Marking Materials Technology Group
Tetsuya Takagi	Corporate Vice President (newly appointed), responsible for corporate planning, corporate business strategy and corporate communications , as well as General Manager of Corporate Strategy	General Manager,Corporate Strategy

Retired corporate officers, effective June 16

• Tadahito Yamamoto (Appointed to Chairman of the Board and Representative Director, Fuji Xerox)
• Keiji Somata (Appointed to Full-time Corporate Auditor, Fuji Xerox)

Retiring corporate officers, effective June 30

• Hirokazu Komaki (To be re-appointed to President and Representative Director, Fuji Xerox Service Creative, Co., Ltd. as of June 23)
• Tsutomu Yanase (To be appointed to President and Representative Director of Fuji Xerox Information Systems Co., Ltd. as of June 23)
• Tatsuya Miyake (To be re-appointed to President and Representative Director, Fuji Xerox Service Link Co., Ltd. as of June 23)

Tariff cuts prompt new wave of Japanese firms

Japanese firms have begun to shift their investments to Vietnam’s trade and service sectors, amid a recent reduction of import duties.

A preferential import tariff, which began in April 2015 as part of the ASEAN-Japan Comprehensive Economic Partnership Agreement, will see over 3,200 tariff lines on Japanese imports reduced to zero percent.

This tariff will specifically focus on material goods, machinery, and electronic products.

Furthermore, under the ASEAN Trade in Goods Agreement (ATIGA) in the 2015-2018 period, many goods will become cheaper to import from other nearby countries than to produce domestically.

The reduction of tariff barriers has prompted Japanese businesses in Vietnam to reduce production and increase the import of goods sold in the domestic market.

Yasuo Nishitohge, general director of Aeon Vietnam, told VIR that the tax reduction will be beneficial for retail businesses. “The tax reduction will help Aeon diversify its products and reduce production costs to gain price competitiveness.”

Another Japanese retailer, Family Mart, affirmed that it would not withdraw from the Vietnamese market, although it previously sold its entire stake in 42 outlets to Thailand’s Berli Jucker (BJC), owned by billionaire Aswin Techajaroenvikul, which then set up a joint venture with Vietnam’s Phu Thai Group.

By the end of 2015, Family Mart plans to have 100 stores operating in Vietnam, with the figure reaching 800-1,000 stores by 2020, accounting for 30% of the local market share.

Tadahito Yamamoto, chairman and chief representative of Fuji Xerox, said that it plans to expand production in Vietnam by setting up a distribution centre here for export to the global market.

According to a survey by the Japan External Trade Organization (JETRO), in 2014, Vietnam licensed a total of 517 Japanese projects, with their total investment falling by 39.1% from 2013.

However, the number of projects in trade and service sectors increased sharply in number. JETRO predicts that Japanese firms will boost their outbound investment in trade and service sectors, amid the depreciation of the Yen against the US dollar and competitive advantages.

Recof Corporation, a leading M&A consulting firm in Japan, said that many Japanese businesses have shown interest in expanding operation in Vietnam. This corporation predicted that M&A deals on trade and service between Japanese and Vietnamese enterprises will strongly increase in the coming years.

According to statistics by the General Department of Vietnam Customs, Vietnam recorded a trade surplus of US$2.14 billion in 2014, the third consecutive year.

The country’s export-import turnover last year totaled US$298.24 billion, up 12.9% from 2013.

Fuji Xerox inks partnership with Tour

Fuji Xerox, the leading company in Document Services and Communications, has become the Official Office Solutions Partner of the Asian Tour, joining a growing list of top-tier corporations sponsoring the region’s premier golf tour.

The sponsorship will enable Fuji Xerox to activate and engage with professional golf at the highest level across the region through its direct involvement with an exclusive selection of Asian Tour events.

This new partnership will allow Fuji Xerox to leverage on an expansive platform and execute its customer engagement programs at Asian Tour events, including hospitality, pro-am benefits and activation spaces.

As part of the partnership, Fuji Xerox will also provide the Asian Tour with high-end office solution needs that meet the Tour’s operational demands.

“Fuji Xerox is pleased to become the Official Office Solutions Partner of the Asian Tour,” says Takashi Nawata, senior general manager, Marketing, Fuji Xerox Asia Pacific Pte Ltd.  “As a leader in the Document Services and Communications field, Fuji Xerox is honoured to support Asian Tour and its players, who conceive new strategies to raise their game each time they play, akin to the way Fuji Xerox continually innovates to bring the best solutions to businesses.”

Fuji Xerox believes that a common passion and enthusiasm for golf will create a strong rapport between Fuji Xerox and existing and new customers around the region and generate new business momentum.

The new alliance is timely as stars from the Asian Tour have performed admirably on the international stage recently, with an unprecedented five consecutive victories achieved in co-sanctioned events with Europe, reinforcing the Tour’s growing stature.

With the Asian Tour’s stable of partners and sponsors including the likes of Rolex (Official Timekeeper), Oakley (Official Eyewear and Footwear Sponsor), FENIX Golf (Official Apparel Partner), Inetol Headwear (Official Headwear Sponsor), Srixon (Official Ball), PRG (Official Accessories Supplier) and Titleist (Official Web Partner), Fuji Xerox’s sponsorship sign-on will provide ample opportunities to cross-promote with many of the leading brands in the various segments.

Another major element in the agreement is the brand exposure for Fuji Xerox through the Asian Tour’s global television platform which reaches 180 countries and 625 million homes, and the Tour’s official website, www.asiantour.com

Asian Tour CEO Mike Kerr expressed his delight with the newest Tour partnership agreement with Fuji Xerox.

“On behalf of our talented players, we are honored that Fuji Xerox, which is the leader in office services and communications, has signed on as a Tour Partner. As the stature of the Asian Tour continues to grow in the world of golf, thanks to stellar performances by our members and strong support from corporations in Asia, we believe our brand offers a truly effective and viable commercial platform for Fuji Xerox to leverage this partnership,” said Kerr.

“We have already partnered with many other leading brands in the world and adding Fuji Xerox to our list simply reinforces the continued growth and expansion of the Asian Tour,” added Kerr.

About Fuji Xerox

Founded in 1962, Fuji Xerox Co., Ltd. is a leading company in the Document Services & Communications field, offering solutions and services to help customers resolve their business challenges. Underlying our solutions and services are our world-class office multifunction devices, printers and production printers that we develop and manufacture for worldwide distribution. Together with cloud and mobile solutions, Fuji Xerox builds a communications environment that enable our customers to access the right information, at the right time, and in the right form—thereby contributing to their valuable communications.

Fuji Xerox is a 75-25 joint venture between FUJIFILM Holdings Corporation and Xerox Corporation, and its direct sales force covers Japan and the Asia-Pacific region including China. We employ approximately 45,000 people globally, with more than 80 domestic and overseas affiliates / sales subsidiaries. More information of Fuji Xerox is available at www.fujixerox.com.

About the Asian Tour

As the official sanctioning body for professional golf in Asia, the Asian Tour leads the development of golf across the region, enhancing the careers of its members while maintaining a commitment to the integrity of the game. The Asian Tour, through its membership of the International Federation of PGA Tours, is the only recognised pan-Asian professional golf tour in Asia. This unique feature positions the Asian Tour at the pinnacle of professional golf in Asia; providing its events with Official World Ranking status. Tour Partners include FENIX Golf (Official Apparel Supplier), Fuji Xerox (Official Office Solutions Partner), Inetol Headwear (Official Headwear Sponsor), Oakley (Official Eyewear and Footwear Sponsor), PRG (Official Accessories Supplier), Srixon (Official Ball), Titleist (Official Web Partner) and Rolex (Official Timekeeper). Sentosa, Singapore is the Home of the Asian Tour which also has an office in Kuala Lumpur. Also, visit us at www.asiantour.com, www.facebook.com/asiantourgolf, www.twitter.com/asiantourgolf, www.youtube.com/theasiantour and www.weibo.com/asiantourgolf.

Product stewardship awarded to Fuji Xerox

New Zealand – Environment Minister Dr Nick Smith today recognised Fuji Xerox for its efforts to responsibly manage the environmental effects of its products, with the company awarded product accreditation under the Waste Minimisation Act for its Zero Landfill scheme.

“The Zero Landfill scheme from Fuji Xerox is a great example of how forward-thinking businesses can manage and mitigate their impact through proactive product stewardship. The scheme aims to recycle and reuse an estimate 99.5 per cent of Fuji Xerox equipment and products – including printers, copiers, toner bottles, print cartridges, drums, rollers and fuser oil, and packaging – resulting in approximately 1200 tonnes being diverted from landfill each year,” Dr Smith says.

“Over 80 per cent of the Fuji Xerox equipment and products that is recycled and reused is collected from customers. The equipment and products are returned to the company through product trade-ins, that are then sent to Fuji Xerox warehouses in Wellington, Christchurch or Auckland for assessment, and either reused or recycled from there,” Dr Smith says.

The Zero Landfill Scheme is the 13th scheme to receive accreditation since the Waste Minimisation Act was passed in 2008. The Act gives the Government the ability to award accreditation, which serves as recognition and endorsement for schemes that meet waste and environmental harm reduction criteria.

“Fuji Xerox’s initiative is the second e-waste initiative to receive accreditation, and demonstrates that it is possible for global electronic corporates to voluntarily take responsibility for the impacts of their products in a way that provides benefits for the environment, and also stacks up commercially,” Dr Smith says.

“I commend Fuji Xerox on the effort to make a positive difference, and

I encourage other organisations and industries to seek accreditation so they too can receive the environmental and economic benefits of product stewardship.”

Further information on product stewardship is available from: www.mfe.govt.nz/waste/product-stewardship

Fuji Xerox and Gakken Holdings Provide Learning Materials to Children of Myanmar

Established a Sustainable Social Contribution System to Help Resolve Educational Disparity

Aiming to help resolve educational disparity, Fuji Xerox Co., Ltd. and Gakken Holdings Co., Ltd. jointly began a project to provide learning materials to the children of Myanmar. Starting with elementary school children in the Yangon suburbs where many migrant workers reside, Fuji Xerox and Gakken Holdings plan to distribute a total of 16,000 learning materials to 4,000 children in the country by 2023.

As the first step of this project in Myanmar, its presentation ceremony was held on June 3, attended by the regional minister of the Ministry of Social Affairs, Yangon Regional Government, the regional officers of the Ministry of Education, local partner companies^Note1 who participated in this project, as well as the students.

Fuji Xerox is responsible for the overall management of this project, as part of its corporate social responsibility (CSR) activity of providing learning materials to children in emerging countries of the Asia-Pacific region where it conducts business. This project was launched in the Philippines in 2014, and Myanmar is the second country for the project to be carried out. By working collaboratively with the group of sponsor companies as well as launching the project in various emerging countries in the Asia-Pacific region, Fuji Xerox aims to increase the number of total children being supported across Asia-Pacific to 100,000 by 2023.

Gakken Holdings Co., Ltd.—Japan’s leading educational company—offered the contents of the mathematics workbook supervised by the Japanese educator Mr. Hideo Kageyama^Note2, translated to the Myanmar language. The workbooks are printed on-demand using Fuji Xerox’s production printing technology by Xenon Company Ltd., which is Fuji Xerox’s Premier Partner^Note3 in Myanmar.

Fuji Xerox and Gakken Holdings will continuously focus on bringing together the strengths of participating partner companies to form a sustainable and effective structure for this project in Myanmar.

• Note1 ACE Data Consulting Services Ltd., Thet Audit Firm
• Note2 Educator and professor of Institute for Teaching and Learning, Ritsumeikan University, Japan. http://kageyamahideo.com/ (Japanese only)
• Note3 A global network of Xerox / Fuji Xerox customers, comprised with the objective of developing business opportunities centered on digital printing.

Related websites:

• Fuji Xerox Sustainability Report 2014,
  Highlight 3: Helping to Educate Children in Disadvantaged Communities
• Information on Gakken Holdings