Deadline Looms for Whole Foods Deal

WASHINGTON — A federal judge here is expected any day to decide whether or not to allow the Federal Trade Commission to block Whole Foods’ planned acquisition of Wild Oats, but either side can walk away from the deal without penalty if they fail to complete the transaction by Aug. 31. Whole Foods yesterday extended the $18.50 per share tender share offer for Wild Oats until 5 p.m. Monday, Aug. 20. So far, about 69.4% of Wild Oats shares have been tendered and not withdrawn, Whole Foods said. Earlier this week, Whole Foods said it was investigating the release by the FTC of confidential information related to the antitrust case in documents made public on Tuesday. According to reports, the FTC at first posted the documents in a way that allowed readers to access information that was blacked out. Among the information that was to be held confidential: Whole Foods plans to close 30 Wild Oats locations after the deal; Whole Foods asked suppliers not to sell directly to Wal-Mart; Whole Foods estimates revenues would increase 85%-90% at stores near closed Wild Oats locations. In a prepared statement, Whole Foods said, “Until the merger is complete, Whole Foods will not have sufficient information, including store level financial statements, to make any final decisions regarding future operations. All information shared with the FTC was done so with the reasonable understanding that it would be handled appropriately.”

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