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When the news broke that the Federal Trade Commission had voted to block the deal, valued at about $700 million, Mackey turned to his blog to rail against the agency’s attitude about competition. He accused the agency of “bullying tactics,” but any antitrust attorney could have warned him that merger investigations are akin to turning over a rock. Lawyers from the FTC — or Department of Justice — often uncover anomalies about market behavior when they start peering into how companies compete. And Mackey should have known that the skeleton in his closet would come out: Mackey has posted entries about his company and his targeted rival for years on a Yahoo! Finance page using a pseudonym, "Rahodeb," based on his wife’s name. Under that moniker, Mackey had a field day, speculating about the value of Wild Oats and nattering on about Whole Foods’ superiority. But what does that mean for Mackey? A criminal investigation? Nope: The FTC doesn’t have authority over criminal matters, which it would have to turn over to the DOJ, or perhaps the Securities and Exchange Commission. But even the SEC is unlikely to make hay with Mackey’s comments, most of which are probably protected speech or innocuous enough, given the forum. But a word to the wise: If you’re interested in a merger, you might want to make sure you aren’t on the record anywhere saying you want to annihilate your target. —Cecile Kohrs-Lindell
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Friday's post from Dealscape Tags: Mackey, Rahodeb, Whole Foods, acquisition, m&a, Securities and Exchange Commission
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Whole Foods Market Inc. CEO John Mackey, buying rival organic grocer Wild Oats
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