Whole Foods Merger Delayed

Updated from 1:08 p.m. EDT

SAN FRANCISCO -- A court ordered Whole Foods(WFMI Quote) and Wild Oats (OATS Quote) to temporarily halt their steps toward a merger as it considers a government appeal protesting the combination.

The U.S. District Court of Appeals for the District of Columbia agreed to a Federal Trade Commission request for an emergency stay, which came just in time for a noon EDT deadline that would have allowed the two grocers to start combining their businesses in a $565 million deal.

The FTC is appealing a decision by a district court judge last week rejecting its request for a temporary injunction against the merger, which the agency argues will result in a monopoly in the organic food sector. ...