Staples and Office Depot Rise on Staples Sale Rumors

NEW YORK, NY / ACCESSWIRE / April 5, 2017 / Both stocks appeared to have benefited from rumors that Staples would soon be sold. The possibility of a Staples-Office Depot merger loomed large last year, but the move was struck down by a California judge.

RDI Initiates
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Staples, Inc. https://ub.rdinvesting.com/news/?ticker=SPLS

Office Depot Inc. https://ub.rdinvesting.com/news/?ticker=ODP

Staples advanced 9.82% to close at $9.51 a share on Tuesday. The stock traded between $8.61 and $10.00 on volume of 31,296,455 shares traded. It has been reported that the company is in discussions with a number of private equity firms regarding a potential sale. Staples is the largest American office-supplies seller which currently has 1,255 stores in the United States and an additional 304 stores in Canada. In March, the company announced plans to sell up to 70 of its existing retail stores in North America.

A potential sale price for the company can exceed $7 billion. Though talks are in progress, the company is not guaranteed to be sold. As the Wall Street Journal reported, Staples failed in its “$6.3 billion merger with Office Depot last year. Last May, a federal judge blocked the deal on the grounds that it could lead to higher prices for large companies that buy things like paper, pens, coffee and janitorial supplies in bulk.” It is facing increasing competition from online stores, but most of its business stems from corporate sales.

Access RDI’s Staples Research Report at: https://ub.rdinvesting.com/news/?ticker=SPLS

Office Depot advanced 2.56% to close at $4.81 a share on Tuesday. The stock traded between $4.63 and $5.04 on volume of 15.5 million shares traded. The company advanced as competitor and one-time suitor Staples was rumored to be looking to be bought out by a private equity firm. Office Depot reported revenues of $11 billion with an operating profit of $531 million for the full year 2016. The company’s net income of $529 million exceeded analyst’s expectations. On January 2nd, the company announced the completion of the sale of its European business to The AURELIUS Group.

Access RDI’s Office Depot Research Report at: https://ub.rdinvesting.com/news/?ticker=ODP

Our Actionable Research on Staples, Inc. (NASDAQ: SPLS) and Office Depot Inc. (NASDAQ: ODP) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Nadia Noorani, CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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