Staples, Office Depot soar on hopes merger may go ahead

SHARE Staples, Office Depot soar on hopes merger may go ahead
staples_store_closing_newm.jpg

Shares of Staples and Office Depot have soared after a federal judge accused the government of trying to bend a witness’s testimony in its case against the merger. | AP file photo

WASHINGTON — Shares of Staples and Office Depot have soared after a federal judge accused the government of trying to bend a witness’s testimony in its case against a merger of the last two major U.S. office-supply chains.

Office Depot Inc. shares rose 9 percent Thursday as investors grew hopeful that the proposed $6.3 billion merger will be allowed over the government’s objections. Staples Inc. shares jumped 7 percent.

The Federal Trade Commission is seeking to block the merger, contending it would dampen competition and allow the new combined company to dictate the price of supplies. The regulators in December rejected Staples’ offer to sell $1.25 billion in contracts to work around the competition issues.

Staples is the largest “big box” office-supply chain. Office Depot is its second-ranked rival.

Office Depot acquired Naperville-based OfficeMax in 2013.

The Latest
A new report from a civic group offers a plan that includes a 10-year income tax surcharge to shore up underfunded pensions. State legislators should take action.
The international community must stay steadfast in helping Turkish and Syrian citizens coping with the aftermath of the disastrous earthquake.
The Utah senator and 2012 GOP presidential nominee exchanged sharp words with the freshman GOP congressman from New York: ‘He shouldn’t be in Congress.’
Andrew McKenna, seemingly inexhaustible, served as board chairman for McDonald’s, Schwarz Paper, the Cubs, the White Sox, the University of Notre Dame and more.
The cuts make up about 3% of Disney’s 220,000-person global workforce and come as the company beat Wall Street’s earnings forecasts.