Staples Would Get 60% Boost From Office Depot Takeover: Real M&A

Staples Inc. (SPLS) has a chance to increase next year’s earnings by at least 60 percent through an acquisition of Office Depot Inc. (ODP), the only other major U.S. office-supplies chain still in business.

With analysts estimating that more than $1 billion of costs could be cut by combining the struggling retailers, earnings per share in the 2015 calendar year would rise about 60 percent in an all-stock merger, according to data compiled by Bloomberg. If Staples were to pay entirely with cash or debt, the accretion would be twice that, while a mix of cash and stock would yield something in between, the data show.

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