The Federal Trade Commission in June sued to block the deal, claiming it would result in higher prices for consumers. Bear Stearns analyst Robert Summers today said new information released this week indicates "the FTC case against the merger appears solid."
The company will likely be snapped up by a conventional grocery store or private equity firm for a discount if the deal collapses.
What is the government afraid of? That Whole Foods would have a monopoly on food sales if this merger goes through? That is ridiculous, even if you want to say organic foods, it is still ridiculous since every large grocer carries a large selection of organic foods.