NEW YORK (AP) -- Staples says that regulators have rejected its offer to sell $1.25 billion in contracts, part of its plan to ease monopoly fears as it attempts to acquire rival Office Depot.
The Federal Trade Commission earlier this month sought to block the deal, saying it would reduce competition in the office supplies market.
Staples, based in Framingham, Massachusetts, said that it is still willing to negotiate with the FTC and that it may pursue legal action to close the deal.
Shares of Staples Inc. rose about 13 cents to $9.55 in morning trading Monday. Shares of Office Depot Inc., based in Boca Raton, Florida, rose 9 cents to $5.50.
The office supply sector has been upended by technological changes in the work place, as well as a slow economic recovery.