Resistance to Amazon's Whole Foods Purchase Grows

Concern is mounting that Amazon's $13.7 billion deal to buy Whole Foods Market will give the company an unfair advantage over traditional grocers and new players that might emerge in the market. Several parties have voiced their concerns:A Seabreeze Partners Management hedge fund manager said he was shorting shares of the retailer because of concern about Amazon in Washington, indicating early discussions over Amazon's size and clout, Reuters reported.Then, Rhode Island Rep. David Cicilline indicated he is pushing for Congress to hold an antitrust hearing to explore potential consequences surrounding the deal. New Jersey Sen. Cory Booker joined Cicilline in calling for a closer examination of the merger.Reuters also said the United Food and Commercial Workers International Union sent a letter to antitrust enforcers warning of the dangers of the deal.Additionally, a Whole Foods shareholder filed a lawsuit that claims the deal "undervalues Whole Foods and is being made without sufficient transparency," the Austin American-Statesman reported.In response, Amazon and Whole Foods plan to refile acquisition documents next week to give U.S. antitrust enforcers more time to complete a review in an attempt to head off a potentially lengthy government investigation, the Wall Street Journal reported.In related news, activist investment firm Jana Partners has made nearly $300 million in net profit after selling all of the Whole Foods shares it acquired this spring. According to Bloomberg, "Jana announced a stake in Whole Foods in April and criticized the chain's poor performance, vowing to shake up the board and possibly seek a takeover of the company. The move prompted Mackey to reach out to Amazon, seeking a friendly buyer." Jana began selling its stake in the company after the acquisition intention was announced, and offloaded the final shares last week.

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