Court Releases Romney Testimony
CANTON — Mitt Romney testified under oath in 1991 that the former wife of Staples founder Tom Stemberg got a fair deal in the couple’s 1988 divorce, even though the company shares Maureen Sullivan Stemberg received were valued at a tenth of Staples’ stock price on the day of its initial public offering only a year later.
At the time the Stembergs split, Romney suggested, there was little indication Staples’ value would soon skyrocket.
Romney’s testimony in a post-divorce lawsuit brought in 1990 by Sullivan Stemberg was unsealed on Thursday in Norfolk Probate and Family Court at the Globe’s request. Sullivan Stemberg sued unsuccessfully to amend the couple’s financial agreement after Staples went public in 1989 and closed its first day of trading at $22.50 per share, 10 times the value she had received.
Source: Boston Globe. Read full article. (link)
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Learn a little Wall Street finance. 1 year out on an IPO and you don't even know if it will happen in many cases. Bain didn't exercise all their stock options in Staples because they didn't know it would turn out to be a big winner either.