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Staples, Office Depot Chasing OfficeMax

OfficeMax Inc., the third-biggest U.S. office-supplies retailer, may be a buyout target for rivals Staples Inc. or Office Depot Inc. in an industry "that only needs two large players," a Credit Suisse analyst said.

The office-supply sector may follow supermarkets and department stores in consolidating as revenue growth slows, Gary Balter, a Credit Suisse analyst, said today in a research note.

OfficeMax last week reported first-quarter profit that trailed analysts' estimates as sales in its stores fell for the fifth straight quarter. The company's profit margins trail those of the larger Staples and Office Depot.

More here.

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