Sycamore Partners is nearing a deal to buy Staples for $10.25 per share in a cash deal, a unnamed source told Reuters.
Shares of Staples rose more than 8 percent in midday trading Wednesday.
Dow Jones first reported that Sycamore could buy Staples for more than $10 per share. The deal could be announced soon, according to reports.
Sycamore has several holdings in retail, owning Talbots, Dollar Express, Coldwater Creek, Hot Topic and Nine West.
Sycamore declined to comment to CNBC.
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