Staples Issues Update On Discussions With FTC: Proposed $1.25 Billion Divestment Has Been Rejected

Shares of Staples, Inc. SPLS were higher by more than 2 percent mid-Monday morning after the company issued an update of its communications with the Federal Trade Commission. Staples noted that its Board of Directors and management have been working "tirelessly" to gain the necessary regulatory approval to finalize its acquisition of Office Depot Inc ODP. Staples said that it has proposed divesting up to $1.25 billion of commercial contracts to "create an acceptable remedy to the FTC." However, the FTC rejected the company's proposal without offering a counteroffer of its own. Staples also reaffirmed its intent to continue working the FTC to reach an appropriate settlement that addresses its concerns.