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Reports: Office players talk merger

The second and third largest players in the office retail space could soon join forces. According to published reports,OfficeMax and Office Depot could announce a merger this week.

The rumors have gotten Wall Street buzzing as pre-market trading saw shares of Office Depot and OfficeMax up 28.5% and 20%, respectively.

For its most recent quarter, Office Depot reported sales of approximately $2.7 billion, down 5% compared to the third quarter of 2011. On a constant currency basis, third quarter 2012 sales were down approximately 3% versus prior year.

The company reported a net loss, after preferred stock dividends, of $70 million or 25 cents per diluted share in the third quarter of 2012, compared to net earnings, after preferred stock dividends, of $92 million or $0.28 per share in the third quarter of 2011.

For its most recent quarter, OfficeMax reported that its total sales were $1.7 billion in the third quarter of 2012, a decrease of 1.7% from the third quarter of 2011. Net income was $433 million, or $4.92 per diluted share, compared with $21.5 million, or 25 cents per diluted share, in the third quarter of 2011.