CORRECTED: Whole Foods and FTC battle over antitrust review

(Corrects spelling of Cooley Godward Kronish LLP in 11th paragraph.)

By Diane Bartz

WASHINGTON (Reuters) - The Federal Trade Commission has refused to drop its fight against Whole Foods Market Inc's (WFMI.O: Quote, Profile, Research, Stock Buzz) merger with rival grocer Wild Oats, saying it still wanted to review the deal, even though the two companies have combined, according to a court document.

The FTC filed a motion on Monday opposing Whole Foods' request that its case before the U.S. Appeals Court for the D.C. Circuit be dropped as moot.

Whole Foods completed its $565 million acquisition of smaller rival Wild Oats in August after the FTC failed to win a temporary injunction to stop the merger, while the agency's administrative examination of the deal unfolded.

In its new court filing, the FTC argued the merger could still be found to be in violation of antitrust statues and that the FTC could still effectively demand changes to the structure of the deal.

"Whole Foods' own pronouncements establish that the consummation of the merger on paper does not mean that the integration of the two companies is complete," the FTC told the court of appeals.

It cited as evidence Whole Foods' decisions to close fewer stores than anticipated and to keep shops slated for shuttering open for at least several months.

The FTC also asked for a "prompt briefing schedule" so that the case could move forward quickly.