Staples Merger Suit Against Sycamore, Essendant Board Tossed

Essendant Inc.’s directors, Staples Inc., and their private equity parent, Sycamore Partners, don’t have to face self-dealing claims over the $1 billion merger between the two office supply giants, a Delaware judge ruled Dec. 31.

Sycamore acquired Essendant in January in a $12.80-per-share deal, paying a $12 million termination fee to elbow aside another suitor, global auto supplies conglomerate Genuine Parts Co.

The merger challenge 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 the private equity group’s below-market offer.

The board agreed ...