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UPDATE 1-Office supplies retailer Staples explores sale - source
April 4, 2017 / 2:37 PM / in 7 months

UPDATE 1-Office supplies retailer Staples explores sale - source

(Adds details, updates shares)

April 4 (Reuters) - Staples Inc is considering selling itself, and is in talks with private-equity bidders, a source familiar with the matter said on Tuesday, sending the largest U.S. office supplies retailer’s shares up about 15 percent.

The retailer last year called off a proposed merger with rival Office Depot Inc due to antitrust concerns.

Both companies have since announced cost-cutting plans and sold most of their European operations to focus on their North America businesses.

Framingham, Massachusetts-based Staples had a market value of $5.65 billion as of Monday.

Staples has reported falling sales for the last five years as it faces growing competition from and other online sellers, as well as big-box retailers such as Costco Wholesale Corp and Wal-Mart Stores Inc.

Staples spokesman Mark Cautela declined to comment.

Office Depot’s shares rose about 5.3 percent to $4.94 in morning trade.

The Wall Street Journal reported earlier that Staples was exploring a sale. (Reporting by Sruthi Ramakrishnan in Bengaluru and Lauren Hirsch in New York; Editing by Sai Sachin Ravikumar and Martina D‘Couto)

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