OfficeMax, OfficeDepot Merger Announced Prematurely

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OfficeMax, OfficeDepot Merger Announced Prematurely
By Steve Morgan (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

OfficeMax Incorporated (NYSE:OMX) and Office Depot Inc (NYSE:ODP) were said to be in merger talks on Tuesday and even earlier this morning, but now The New York Times reports that the announcement may have come a bit too early.

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OfficeMax, OfficeDepot Merger Announced Prematurely

The news story, which announced that the two office supply giants would merge, appeared for just a short while on Office Depot Inc (NYSE:ODP)’s website on Wednesday. However, it disappeared a short time afterward. The New York Times now reports that the two companies are still discussing the final terms of the agreement.

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Several news outlets, including ValueWalk, reported the terms of the agreement. However, two spokespeople for Office Depot said the press release was just a draft, and the terms described in that release had not yet been finalized. One of the sources cited by The New York Times does said the terms listed in that release are very close to where they are expected to be finalized.

The stocks of both companies have already been impacted by news of the possibly impending merger. Shares of OfficeMax Incorporated (NYSE:OMX) jumped on Tuesday and kept rising, gaining 8 percent. Shares of Office Depot Inc (NYSE:ODP) jumped very briefly on Wednesday, but then dropped back down again.

Shares of Staples, Inc. (NASDAQ:SPLS) were also affected on Tuesday. They jumped approximately $2 per share, although the stock is down about 2 percent on Wednesday.

At this point it is still highly likely that the deal between the two retail chains will happen, even though news of it was leaked prematurely. If the two companies joined forces, they would be able to bring more competion to their online rivals like Amazon.com, Inc. (NASDAQ:AMZN).

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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