AMSTERDAM (Reuters) -- The largest U.S. office supply retailer, Staples (SPLS.O), is in early-stage talks to buy Dutch rival Corporate Express (CXP.AS), a Dutch newspaper said on Tuesday, boosting Corporate Express shares to month-highs.

""How the acquisition will look like is unclear. The talks are early stage,"" a Staples source was quoted as saying in Dutch newspaper De Telegraaf.
A Corporate Express spokeswoman declined to comment and representatives for Staples in Europe were not immediately available for comment.
Corporate Express, one of the world's largest office products wholesalers and formerly known as Buhrmann NV, has come under pressure from hedge funds to sell itself although it has said it wants to remain a stand-alone company.
The Dutch company's shares were up 33 percent at 5.74 euros by 4:45 a.m. EST, giving it a market capitalization of 1.04 billion euros, Staples has a market value of $16.9 billion, according to Reuters data.
Corporate Express is trading at a slight discount to Staples, at 12 times projected 2008 earnings versus a price-earnings ratio of 15 for Staples and 10 for number two U.S. rival Office Depot Inc (ODP.N).
Company’s profitability
The newspaper reported that a spokesman for Staples said the retailer was looking at opportunities that could increase the company's profitability but declined to comment on possible discussions with Corporate Express.
Analysts said Staples could benefit from buying Corporate Express and a bid price could be as high as 11 euros per share. Its shares traded at the 11-euro-level last summer, giving the company a market capitalization of 2 billion euros. ""(Hedge fund) Centaurus has been reported as showing interest at around 9.5 euro which in our view would make a bid successful within that range,"" ING analyst Marc Zwartsenburg said in a note Shares in Corporate Express have fallen 63 percent in the past year, compared to a 10.7 percent decline of the Amsterdam blue chip index (.AEX) as the company has been hit by falling sales in its key U.S. market.
It generates around half of its revenue in the United States and has seen pressure on margins rise and market share shrink. Rivals like Office Depot and Newell Rubbermaid Inc (NWL.N) have warned of weak economic conditions in the United States as credit problems in the U.S. housing market could affect spending.
Sources close to Centaurus Capital and a U.S. hedge fund told Reuters last September Corporate Express should seek a buyer to unlock value.
A Centaurus spokesman declined to comment. The paper said some activist shareholders at Corporate Express were pleased about the possible sale of the company.
Corporate Express will publish annual results on Thursday this week, after it brought forward the date from February 22 last month without giving a reason for the change.