Updated from 2:19 p.m. EDT

Rare Hospitality ( RARE) was among the Nasdaq's biggest winners Friday, with shares soaring 35.9% after the restaurant owner agreed to be acquired by Darden Restaurants ( DRI).

Darden, owner of chains such as Red Lobster and Olive Garden, will pay $38.15 a share for Rare, a 39% premium over the stock's closing price Thursday. The deal values Rare, operator of the LongHorn Steakhouse and Capital Grille chains, at $1.4 billion including debt. The transaction is expected to close in October.

Shares of Rare closed up $9.87 to $37.38. Darden shares slipped $1.03, or 2.6%, to $38.93.

Shares of Whole Foods ( WFMI) jumped 7.6% after a judge ruled that it won't block the grocer's purchase of rival Wild Oats ( OATS). The Federal Trade Commission had sought to halt the deal under the belief that it would create a natural-foods monopoly.

The FTC said Friday afternoon that it will appeal the judge's decision and seek an emergency stay to stop the $565 million merger. Still, shares of Whole Foods closed up $3.13 to $44.30, while Wild Oats closed up $2.71, or 17.8%, to $17.92.

Outside of deals, Kohl's ( KSS) closed 8% higher after posting better-than-expected earnings and lifting the bottom end of its guidance. The retailer posted a second-quarter profit of $269.2 million, or 83 cents a share, topping its own forecast for EPS of 81 cents to 85 cents. Analysts polled by Thomson Financial projected earnings of 82 cents a share.

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