Stocks Open Higher as Investors Hope That Mergers Will Continue; Office Depot, OfficeMax Soar

Los Angelas, CA -- (SBWIRE) -- 02/19/2013 -- Staples Inc. (NASDAQ:SPLS) rose the most in more than four years after reports that the office-supply chain had recently discussed a buyout and that Office Depot Inc. and OfficeMax Inc. are discussing a possible merger.

The shares surged 14 percent to $14.72 at 9:46 a.m. in New York and earlier climbed as much as 17 percent for the biggest intraday gain since October 2008. Framingham, Massachusetts- based Staples had declined 14 percent in the 12 months through Feb. 15, compared with a 13 percent gain for the Standard & Poor’s 500 Index.

Office Depot (NYSE:ODP) and OfficeMax (NYSE:OMX) are discussing a merger with a stock-swap deal possible this week, a person familiar with the matter said yesterday. The talks were reported earlier by the Wall Street Journal, which also said yesterday that Staples had preliminary discussions about a buyout with private-equity firms in recent months.

A merger of Boca Raton, Florida-based Office Depot and Naperville, Illinois-based OfficeMax would create a company with almost $18 billion in revenue, compared with $25 billion in revenue last year for Staples.

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