FTC, states preparing suit to block Kroger, Albertsons merger, Bloomberg says

The Federal Trade Commission and a group of states are poised to sue as soon as next week to block the merger between Kroger (KR) and Albertsons (ACI), Leah Nylen and Jaewon Kang of Bloomberg report, citing people familiar with the plans. The suit is expected before February 28, when an agreement not to close the deal between the companies and the FTC expires, according to Bloomberg. Several states are expected to join the suit alongside the federal antitrust enforcers, sources told Bloomberg. The companies are working to schedule meetings with the FTC Chair Lina Khan in an effort to persuade the antitrust agency not to sue over their proposed deal, said one of the people. Shares of Albertsons are down 12c to $21.42 following the report while Kroger is up 63c to $48.26.