A federal appeals court on Monday temporarily put Whole Foods' buyout of Wild Oats on hold, saying it needs more time to consider whether the nation's two biggest natural-foods grocers can combine.

The U.S. Court of Appeals for the D.C. Circuit said the decision "should not be construed in any way as a ruling on the merits" of the case.

The Federal Trade Commission on Thursday appealed a ruling by U.S. District Judge Paul Friedman that said Whole Foods' proposed purchase of Boulder-based Wild Oats didn't violate antitrust laws and could proceed. The agency claims Friedman made eight reversible errors, but because the opinion is sealed the details aren't known.

Whole Foods has until Wednesday afternoon to respond to the FTC's request for a stay, and the agency has until Thursday to counter.

The accelerated schedule suggests that the court plans to move quickly.

The companies agreed last week not to begin closing the deal until 10 a.m. MDT on Monday to give the appeals court time to rule on the FTC's stay request, which is the last remaining obstacle to moving ahead.

"Whole Foods said to the appeals court, 'You can dine here but you only can have the option of fast food,' " said David Balto, a former policy director for the FTC who represents several consumer groups opposing the deal. "The court of appeals said, 'Sorry, we're going to sit down and have a full meal before we decide.' "

Under terms of the deal reached in February, the deadline for the deal is Aug. 31.

After that, the financing expires and either side can walk away without paying the $15.2 million breakup fee.

If the appeals court grants a stay pending the FTC's appeal, which could take months to resolve, the deal could potentially be in jeopardy.

Whole Foods attorney Paul Denis said the company is hoping for "a quick ruling that legally clears the way for the merger to move forward."

Mitch Katz, a spokesman for the FTC, said the agency has no comment.

Whole Foods on Monday extended its tender offer to purchase all outstanding shares of Wild Oats until next Monday. The $671 million offer includes $18.50 a share plus the assumption of $106 million in debt.

What's next

• Wednesday: Whole Foods' response due to the appeals court at 3 p.m. MDT.

• Thursday: The FTC's reply is due at 2 p.m. MDT.

• Monday: New expiration of Whole Foods' tender offer for Wild Oats shares.

• Aug. 31: Deadline for the deal under the merger agreement. After Aug. 31, either side can walk away without paying breakup fee.

davisj@RockyMountainNews.com or 303-954-2514