Office Depot (NYSE: ODP) is urging shareholders to reject the efforts of Levitt Corp. (NYSE: LEV) and Woodbridge Equity Fund to elect two of their nominees to the company's board of directors at the company's April 23rd annual meeting. The investors, who own about 1% of the company, are seeking to replace the company's current CEO and chairman and its former CEO and chairman; they have nominated the company's former COO and the former president of Staples (NYSE: SPLS) to replace them.

In a press release, the company said that it "believes that removing two of the most experienced retailing executives from the Office Depot Board would be highly disruptive, and could destabilize the Company and damage prospects for a successful turnaround. The Board has a strong long-range plan that is in the process of being implemented under difficult macroeconomic conditions."

As with many situations like this, the chart tells the story. Over the past 10 years, Office Depot has lost nearly 50% of its value while Staples has more than doubled in value. Obviously the current strategy is a failure, and the "experienced retailing executives" have destroyed billions of dollars in shareholder value. They might as well give someone else a shot and, if these directors should be opposed, the opposition shouldn't come from a board of directors with a horrendous track record.

MOST NOTEWORTHY: Gander Mountain, Lev Pharmaceuticals, Intermune, Aetna and Medco Health were today's noteworthy initiations:

• Nollenberger initiated shares of Gander Mountain Company (NASDAQ: GMTN) with a Sell rating and $5.00 target, and believes the company's goal of reaching profitability in 2007 could prove overly optimistic.
  
• Lev Pharmaceuticals (OTC: LEVP) was initiated with a Sector Outperformer rating and $3 target at CIBC, as the firm believes Cinryze will likely be approved in 1Q08 and they expect the company to have significant pricing leverage.
  
• JP Morgan resumed coverage of Intermune Inc (NASDAQ: ITMN) with an Overweight rating and expects shares to be driven by the company's pipeline in IPF and HCV.
  
• Aetna Incorporated (NYSE: AET) was initiated with an Outperform rating at Wachovia. The firm feels Aetna is positioned for better growth and higher quality earnings than its peers.
  
• William Blair started shares of Medco Health Solutions Inc (NYSE: MHS) with an Outperform rating, as they believe an aging population, rising health care costs, and an acceleration in new product introductions should increase demand for PBM services over the next five years.

OTHER INITIATIONS:

• ABN Amro started shares of Siliconware Precision Industries Company Ltd (NASDAQ: SPIL) and Advanced Semiconductor Engineering Inc (NYSE: ASX) with Buy ratings.
  
• Goldman initiated Silicon Image Inc (NASDAQ: SIMG) with a Sell rating and $4.50 target, and initiated Sigma Designs Inc (NASDAQ: SIGM) and SiRF Technology Holdings Inc (NASDAQ: SIRF) with Neutral ratings and a $43 target and $19 target, respectively.