SOURCE: The Bedford Report

The Bedford Report

July 01, 2011 08:16 ET

Potential Office Depot and OfficeMax Merger "Makes Sense"

The Bedford Report Provides Equity Research on Office Depot & OfficeMax

NEW YORK, NY--(Marketwire - Jul 1, 2011) - The slowing economic recovery has left the office supply sector battling over consumers. In a sector that most analysts argue is in need of consolidation, the current environment has given customers leverage to negotiate better supply contracts due to the availability of competitors.The Bedford Report examines the outlook for companies in the Office Supplies Industry and provides stock research on Office Depot, Inc. (NYSE: ODP) and OfficeMax, Inc. (NYSE: OMX). Access to the full company reports can be found at:

www.bedfordreport.com/ODP

www.bedfordreport.com/OMX

Brian Levine, a spokesman for Office Depot, said that "consolidation makes sense" in the office supplies industry. "Office Depot needs OfficeMax," argues Anthony Chukumba, an analyst with BB&T in New York. "They need to combine so they can scale up to better compete with Staples."

Ron Sargent, Staples chairman and chief executive, believes the office supply sector will consolidate as the three large chains become "two or less." Sargent further acknowledged the large number of office-supply stores in North America.

The Bedford Report releases investment research on the Office Supplies Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Office Depot has operations throughout North America, Europe, Asia, and Central America. The company generated nearly 30 percent of its 2010 sales from outside North America. OfficeMax, meanwhile, earned less than 20 percent of its 2010 revenue from outside North America due to its smaller international presence.

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