NEW YORK (TheStreet) -- Shares of Staples (SPLS) are up 11.31% to $16.49 in pre-market trade after it was reported that Starboard Value LP has built about an 6% stake in the company, and boosted its position in Office Depot (ODP) to about 10%, moves that could raise pressure for a combination of the office supply retailers, the Wall Street Journal reports.
Staples has a market capitalization of $9.2 billion, valuing the activist investor's stake in the company at about $550 million. Starboard had an about 8.6% stake in Office Depot, and it has a market value of about $3.5 billion.
In Thursday's filings disclosing the stakes, Starboard didn't spell out any changes it might seek. But the industry has long been under pressure to consolidate to better compete with rivals such as Amazon.com (AMZN) , Walmart (WMT) and Target Corp. (TGT) . that offer broad selections of products including office supplies at discounted prices, the Journal said.
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Shares of Office Depot are up 6.47% to $7.16 in pre-market trade.
TheStreet Ratings team rates STAPLES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: