FTC Looks to Squash Whole Foods-Wild Oats Deal

Updated from 2:17 p.m. EDT

The Federal Trade Commission plans to file a lawsuit to block Whole Foods' (WFMI Quote) acquisition of rival grocer Wild Oats Markets(OATS Quote), the companies said Tuesday.

The natural-foods chains, which agreed to merge in February, plan to challenge the suit.

"While we disagree with the FTC's position and believe it is without legal and factual merit, we are confident that, once presented with the facts, the Court will agree that this merger is pro-competitive and the FTC's application for an injunction will be denied, thus allowing us to proceed forward with the merger," said Wild Oats Chairman and CEO Greg Mays. ...