Staples’ plan for Office Depot rejected by FTC

WASHINGTON — Staples said its improved proposal to win antitrust approval for Office Depot Inc. was rejected by the Federal Trade Commission, which sued to block the merger of the office supply retailers earlier this month.

Staples said it offered to transfer commercial contracts worth up to $1.25 billion, up from $500 million previously, according to a statement Monday.

The FTC rejected that offer without making a counteroffer, Framingham, Mass.-based Staples said in the statement. The company said it’s willing to continue negotiations with the FTC to reach a settlement that addresses its concerns.

The FTC sued to block the tie-up between the No.1 and No. 2 office supply retailers Dec. 7, saying the transaction would hurt competition and should be blocked. The agency said the deal would raise prices for corporate customers who buy under contract. A trial has been set for March 21 in Washington.

Staples said it would continue to pursue the transaction through litigation.

“The company is confident in its legal position and looks forward to a full and impartial judicial review of the matter,” Staples said in the statement.

During a court hearing last week, Diane Sullivan, a lawyer for Staples, said that the companies had held “significant and substantial discussions” with the FTC.

FTC lawyer Tara Reinhart responded that the agency has told the companies that it’s concerned that they are merely transferring contracts and not divesting physical assets.

An FTC spokeswoman didn’t immediately respond to a phone message seeking comment.