Staples, Office Depot merger talk moves stock
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Staples rallies on hopes of merger with Office Depot
Shares of Staples surged on Tuesday making it TheStreet's Move of the Day. The office supplies chain rallied after Credit Suisse upgraded the stock to outperform, recommending it buy rival Office Depot as a strategy to compete with online retailers.
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Is Staples going to buy Office Depot?
A Wall Street analyst said the company should, and stock in the two major office-supply retailers surged Tuesday.
Staples gained 8.1% to $12.65 a share, while Office Depot climbed 6.3% $5.44.
The big moves came as Credit Suisse analyst Gary Balter said in a note to investors that Staples should buy Office Depot as competition from online retailers picks up.
Balter told Bloomberg that, "Retail is losing share to online and many managements are either wearing blinders or are ignorant to that, and you need someone to wake them up."