Staples, Office Depot Surge on Report of Merger Discussions

Staples Inc. and Office Depot Inc. shares soared after the two retailers were said to enter merger talks, bowing to pressure from activist investor Starboard Value to pool their resources.

The two companies are discussing a deal that would create one major office-supply chain in the U.S., according to a person familiar with the situation, who asked not to be identified because the deliberations are still private. The negotiations were previously reported by the Wall Street Journal, which called the talks “advanced.”