Office Depot, OfficeMax spike on merger talk
Shares of the office supply retailers spike after media reports that they are discussing a deal.
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.
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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