=Staples (SPLS) to be acquired by Sycamore Partners?

• Private equity firm Sycamore Partners is on the brink of acquiring Staples (SPLS), the world's largest office supply company, in a deal that could top $6 billion, according to Reuters.
• In May, Cerberus Capital Management emerged as the front runner to secure the retailer.

  

Private equity firm Sycamore Partners is in advanced talks to acquire Staples Inc (SPLS) following an auction for the U.S. office supplies retailer, people familiar with the matter said on Wednesday, in a deal that could top $6 billion.

The acquisition would come a year after a U.S. federal judge thwarted a merger between Staples and peer Office Depot Inc (ODP) on antitrust grounds.

It would represent a bet by Sycamore that Staples could more quickly shift its business model from serving consumers to catering to companies if it were to go private.

Sycamore is in the process of finalizing a debt financing package for its bid for Staples after it prevailed over another private equity firm, Cerberus Capital Management, three sources said.

An agreement could be announced as early as next week, though negotiations between Sycamore and Staples are continuing and there is still a possibility that deal discussions could fall apart, the sources added.

Staples has 1,255 stores in the United States and 304 in Canada. It has the largest market share of office supply stores in the United States at 48 percent, and its share has increased since 2011, according to Euromonitor.

A number of private equity-backed retailers, from Sports Authority Inc to Payless ShoeSource Inc, have filed for bankruptcy in the last two years.

Sycamore, however, specializes in retail investments and has been more bullish on the sector. Its previous investments include regional department store operator Belk Inc, discount general merchandise retailer Dollar Express and mall and web-based specialty retailer Hot Topic.