Ftc Sours On Merger

The Federal Trade Commission will attempt to block H.J. Heinz Co.’s proposed $185 million acquisition of Milnot Holding Corp., owner of the Beech-Nut brand prepared baby foods, the agency said Friday.

The merger would create a company that would control about a quarter of U.S-prepared baby food sales, compared to industry leader Gerber, which has 70 percent of the market.

Officials of the Pittsburgh-based Heinz Co., and St. Louis-based Milnot, have maintained the merger is needed to compete with Gerber, but FTC lawyers believe the combination could lead to reduced competition and higher prices.