Court delays Whole Foods deal for Wild Oats

WASHINGTON — A federal appeals court said Monday it needs more time to consider whether to block Whole Foods Market Inc.’s takeover of rival Wild Oats Markets Inc.

The U.S. Court of Appeals for the District of Columbia Circuit temporarily put the $565 million deal on hold until it can hear more arguments. The three-judge panel said, however, the decision “should not be construed in any way as a ruling on the merits” of the case.

The Federal Trade Commission Friday asked the court to stay a decision by U.S. District Judge Paul L. Friedman that allowed the transaction to proceed. The agency has also appealed Friedman’s Thursday decision and wants to block the deal on antitrust grounds.

Whole Foods is blocked “from taking any further steps to acquire the stocks, assets or any other interest” in Wild Oats until the appeals court issue a further ruling, the panel said Monday.

Whole Foods has until Wednesday afternoon to respond to the FTC’s request for a stay, the court said. The agency has until Thursday to counter Whole Foods’ response.

The companies agreed last week not to begin closing the transaction until noon Monday to give the appeals court time to rule on the FTC’s stay request, which is the remaining obstacle to moving ahead.

“We…hope for a quick ruling that legally clears the way for the merger to move forward,” Paul T. Denis, a lawyer for Whole Foods, said Monday.

The company also said it has extended its tender offer to purchase all outstanding shares of Wild Oats until next Monday.