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

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.

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