Staples, Inc. (NASDAQ:SPLS) shares have spiked more than 13% after the Wall Street Journal reported that the office supply chain is said to be in talks with various potential PE bidders over a potential sale. Although the Journal qualified its statement by saying that the talks might not necessarily lead to a deal, traders are bidding shares up in anticipation of the premium a takeover might command.
Staples, Inc. (NASDAQ:SPLS) previously tried to merge with Office Depot in a deal that would have unlocked substantial synergies. Due to their somewhat imposing market shares, however, the Department of Justice blocked the merger due to antitrust reasons. On the account of competition from Amazon.com and various other factors, Staples stock has relatively range-bound before today.
What Does The Smart Money Sentiment Say?
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According to our data, smart money sentiment in Staples improved in the fourth quarter. The number of elite funds with holdings in Staples, Inc. (NASDAQ:SPLS) rose by 4 quarter-over-quarter to 39 at the end of December while the amount held stayed relatively the same going to $637.4 million from $663.57 million. Steve Leonard‘s Pacifica Capital Investments raised its stake by 7% to 828,423 shares in the fourth quarter.
The Bottom Line
Traders are bidding up Staples, Inc. (NASDAQ:SPLS) on the back of a Wall Street Journal story that said the office supply chain is talking with various PE firms over a potential sale. For further office related reading, check out the article ‘10 Team Bonding Activities for Office‘.