Staples-Essendant Merger Challenge Heads to Delaware High Court

A former Essendant Inc. shareholder asked Delaware’s top court to revive his lawsuit claiming its $1 billion merger with fellow office supplies giant Staples Inc. was the result of self-dealing by their private equity parent, Sycamore Partners.

The proposed Chancery Court class action challenged Sycamore’s $12.80-per-share Essendant buyout last January, when it paid $12 million to elbow aside another suitor, global auto supplies conglomerate Genuine Parts Co.

The lawsuit accused Essendant’s directors of succumbing to pressure from Sycamore, which acquired about 11% of its stock while the GPC tie-up was pending, when they accepted its below-market offer.

The board allegedly ...