New York – A Credit Suisse analyst is reportedly recommending that Staples and Office Depot, itself recently merged with Office Max, merge. According to Investors Business Daily, Credit Suisse analyst Gary Balter made the suggestion in a note sent to clients on Tuesday, Sept. 2.
The note said the proposed merger "makes significant financial and operational sense." Among the arguments Balter presented are that the wording of the FTC approval of the November 2013 Office Depot-Office Max merger indicates a merger with Staples would also meet approval, and that disappointing financial results in both companies’ most recent quarterly reports support a merger.
In addition, Balter’s note said the operating profit of the resulting merged company could double by 2017.