Office Depot to buy OfficeMax for $1.2bn Office Depot said it had agreed to buy OfficeMax, a rival US stationery retailer, for around $1.2bn on Wednesday, but then quickly withdrew its deal announcement, which appeared to have been published prematurely. In an all-stock deal, Office Depot said it would issue 2.69 shares for each OfficeMax share - valuing the smaller group at $13.50 per share based on Tuesday's closing price - according to several media outlets that saw the announcement. But in an unusual episode, the announcement, which appeared within a press release about Office Depot's fourth-quarter earnings - originally scheduled to be released next week - was quickly withdrawn. The two companies declined to comment on it amid reports that it had been a draft that was published in error and could be subject to change. Both companies" shares rose in early trading on Wednesday, added to the previous session's gains, with Office Depot up 9.2 per cent to $5.48 and OfficeMax rising 6.1 per cent to $13.79 - above the reported $13.50 offer price. Last October, Google's earnings were accidentally published several hours earlier than planned, sparking a sell-off of its shares. Once the deal is completed the board of the combined group would contain an equal number of directors chosen by Office Depot and OfficeMax, the announcement said. Consolidation in the office supplies sector has been long awaited. While the two companies face stiff competition from Staples, the online retailer Amazon is also encroaching on their territory while discounters such as Walmart and Target fight for market share as well. Analysts said a merger would make sense by enabling the companies to close overlapping stores, cut costs and pool merchandise buying, distribution and advertising.