FTC to block Wild Oats-Whole Foods merger

Shares of Wild Oats Markets Inc. (Nasdaq: OATS) are climbing Monday morning after The Federal Trade Commission filed an antitrust lawsuit to block the $565 million sale of Wild Oats to Whole Foods Market, Inc. (Nasdaq: WFMI).

The FTC says the merger of Wild Oats and Whole Foods, the nation's two largest natural-food chains, would increase prices and restrain competition.

Wild Oats says prices at its stores will fall if they are bought by competitor Whole Foods Market Inc., and says regulators should not contest the deal because it would be positive for consumers.

Shares of Wild Oats climbed 7.75%, or $1.02, to $15.47 mid-morning Monday.

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