Two people familiar with the case who spoke on condition of anonymity because of the confidentiality agreement say Sullivan Stemberg believes that Romney understated the future value of Staples, which could have lowered the settlement Stemberg paid. At the time, Romney was a leader at Bain Capital, a major early investor in Staples, and a member of the Staples board.
Romney told the divorce trial judge he believed the office supply company could go bankrupt at any time and the company’s stock, then estimated at $2 a share, was over-valued, according to media accounts when Sullivan Stemberg appealed the divorce settlement.
A year after the settlement, Staples went public, and its stock value soared to $19 a share. Bain Capital turned a $2.5 million investment into a $13 million profit. Romney’s decision to back the firm helped cement his reputation as a savvy investor.
Go Mitt.
Staples’s Value May Be Issue In Romney’s Testimony (Washington Post)
Judge UNSEALS Mitt Divorce Transcript Docs(TMZ)
