Viking Settles Suit Over Office Depot Bid

Viking Office Products Inc. agreed to settle a lawsuit by a shareholder who tried to block its proposed takeover by retail powerhouse Office Depot Inc. for about $2.7 billion in stock. The suit filed by Thaddeus Szymczak had sought class-action status on behalf of all shareholders, arguing that the largest catalog seller of office products failed to conduct a truly independent appraisal of the company’s value and wasn’t getting enough money for shareholders. Torrance-based Viking said in a filing with the Securities and Exchange Commission that it agreed to reduce by 5% the fees it will pay Office Depot if the transaction doesn’t close and pay the shareholder’s attorneys as much as $300,000. The breakup fees were reduced to $28.5 million and $47.5 million, depending on whether Viking ultimately merges with another party. Though that wouldn’t increase the price of the takeover, it would provide some savings to the company if the arrangement collapses. The settlement must be approved by a judge. Viking shares fell 94 cents to close at $30.25 on the Nasdaq.