What is the status of the Whole Foods and Wild Oats merger?
Answers:
The tender offer for Wild Oats has been extended until 20 June 2007.
See the press release here:
http://www.wholefoods.com/investor/pr07-...
The key salient points are:
1) The FTC has requested more information, requiring more time for Anti-Trust review.
2) The tender period keeps getting extended, hinting at that they are struggling to get required 50% of required tenders
3) Look at OATS stocks - which has settled downward here:
http://finance.yahoo.com/charts#chart1:s...
This is the market saying that there is a very small, but growing chance that the deal will not go through. Remember, the tender price is $18.50. So the price used to be near 18.50, pointing toward a 99% chance of going through. Now at 17.20, the market is saying that there is about a 95% chance of it not going through.
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