Wednesday, June 20, 2007

Whole Foods CEO Gives FTC Something to Go On

"John Mackey might have given lawyers at the Federal Trade Commission all the evidence they needed to kill the deal he so badly wanted.

The chief executive officer at Whole Foods, according to attorneys for Uncle Sam, was unusually honest with his own board about Whole Food's attempted acquisition of competitor Wild Oats Markets.

Mackey told colleagues, so lawyers contend, that if Whole Foods (nasdaq: WFMI - news - people )snatched up Wild Oats (nasdaq: OATS - news - people ), the acquisition would "eliminate forever" the chance of anybody else establishing a serious contender in the natural and organic grocery business. He also said that if his company managed to buy its smaller rival, the deal would allow Whole Foods to "avoid nasty price wars."

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