We said it once, and we’ll say it again: If you’re a CEO, don’t trash-talk the company you’re looking to buy on Yahoo message boards – unless you’re looking to get grilled by the SEC. And while you’re at it, don’t make statements that will otherwise put a wrench in the works of your own company’s (Whole Foods) deal to buy a competitor (Wild Oats). Just in case you’re reading, John Mackey.

When the U.S. government goes to court this week to try to block Whole Foods Market Inc.'s planned purchase of Wild Oats Markets Inc., the judge will wrestle with this question: Which of John Mackey's arguments is most convincing?

The Federal Trade Commission contends Whole Foods and Wild Oats operate in a distinct market for premium natural and organic groceries and the $565 million deal would curtail competition and raise prices in that segment. To make its case, the agency is relying on comments by Mr. Mackey, the chief executive of Whole Foods, which suggest he considers his company's playing field different than that of typical grocers.

"Safeway and other conventional retailers will keep doing their thing -- trying to be all things to all people," Mr. Mackey has said, according to the FTC. "They can't really effectively focus on Whole Foods' [clientele]."

But Mr. Mackey has said Whole Foods faces competition from the conventional supermarket giants, which increasingly hawk natural and organic foods. "Whole Foods faces more competition today than ever before in our entire history!" Mr. Mackey wrote on his blog on Whole Foods' Web site last month.

Some of Mr. Mackey's assertions have gotten him into hot water because of their venue. While the FTC reviewed the merger, it learned Mr. Mackey had posted anonymous comments about his company and others in online stock forums for years. Those postings are now the subject of a Securities and Exchange Commission informal inquiry and of an internal probe by Whole Foods' board.

(Continue reading this story on Wall Street Journal)

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