Ravi K. Saligram Appointed As President & CEO Of OfficeMax; Private Value Remains High

J.P. Morgan is reporting that OfficeMax, Inc.

has announced that Ravi K. Saligram will become the company's new president & CEO, effective Nov 8th. Mr. Saligram will replace Sam Duncan, who will step down as chairman, president & CEO, and director effective Nov 7th. “We believe that OMX was looking for a leader who could both drive/ride an operational turnaround but also, perhaps more importantly, differentiate the brand to grow sales,” J.P. Morgan writes. “The company's five-year plan (announced in March) included a focus on nontraditional outlets (e.g., food and drug retailers) as well as integrated services.” J.P. Morgan expects the new CEO to take time to review the current strategy, and believes he will have some changes in mind (the depth of which is unknown). “We believe OMX's private value remains higher than its current public price and thus the market was underappreciative of the value of the company (which made it the best LBO candidate in the office space). The biggest question on any deal was whether OMX was willing to sell to any suitors that might show up.” OfficeMax currently trades for $16.03.