Office Depot, OfficeMax spike on merger talk

Shares of the office supply retailers spike after media reports that they are discussing a deal.

By TheStreet Staff Feb 19, 2013 1:40PM

 Arrow Up copyright Image Source, PhotolibraryBy James Rogers thestreet logo

 

Shares of Office Depot (ODP) and OfficeMax (OMX) are climbing in trading Tuesday after media reports that the retailers are in advanced merger talks.


Shares of Office Depot surged 28.32% to $5.89 before market open, and were still up over 10% around noon. OfficeMax, meanwhile, climbed 20% before the open to $12.90, and held that level through the early afternoon. 


Citing people familiar with the matter, The Wall Street Journal reported that the deal is expected to be stock-for-stock, and said that although talks could still fall apart an announcement could come as early as this week. Bloomberg also reported that a deal is possible this week, citing a person familiar with the matter.


Shares of Office Depot, which TheStreet reports has been struggling to compete with larger rival Staples (SPLS), have plunged more than 67% over the last five years.


Both Office Depot and OfficeMax declined to comment on this story when contacted by TheStreet.


"As a matter of company policy, we don't comment on rumors or speculation," wrote an Office Depot spokesman, in an email.


"It is our long-standing policy that we do not comment on market rumors or speculation," added a spokeswoman for OfficeMax in an email to TheStreet.


Staples shares were up 9.5% around noon.

 

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