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Office Depot, OfficeMax Spike on Merger Talk (Update 1)

Stocks in this article: ODP OMX SPLS

Updated share prices have been added to this story.

NEW YORK ( TheStreet) -- Shares of Office Depot (ODP) and OfficeMax (OMX) spiked in premarket trading on Tuesday after media reports that the retailers are in advanced merger talks.

Shares of Office Depot surged 28.32% to $5.89 before market open, while OfficeMax climbed 20% to $12.90.

Citing people familiar with the matter, The Wall Street Journal reported that the deal is expected to be stock-for-stock, and said that although talks could still fall apart an announcement could come as early as this week.

Bloomberg also reported that a deal is possible this week, citing a person familiar with the matter.

Shares of Office Depot, which has been struggling to compete with larger rival Staples (SPLS) , have plunged more than 67% over the last five years.

Both Office Depot and OfficeMax declined to comment on this story when contacted by TheStreet.

"As a matter of company policy, we don't comment on rumors or speculation," wrote an Office Depot spokesman, in an email.

"It is our long-standing policy that we do not comment on market rumors or speculation," added a spokeswoman for OfficeMax in an email to TheStreet.

Staples shares rose 13.44% to $14.69 in premarket trading.

--Written by James Rogers in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

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