business

A federal appeals court cleared the way for Whole Foods Market Inc. to buy rival organic grocer Wild Oats Markets Inc. The three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit denied a request by the Federal Trade Commission (FTC) to block the $565 million merger. U.S. District Judge Paul Friedman refused to step in last week and block the deal, a decision that federal regulators quickly appealed. The appeals court, in a brief ruling, agreed that the FTC "raised some questions" about the deal, but the judges said the agency had not proved that Friedman's decision was flawed.

Borrowing is brisk at Fed's discount window

Banks have stepped up their borrowing from the Federal Reserve, encouraged by central bank policymakers to help stem a credit crunch that has roiled Wall Street. The Federal Reserve said the daily average borrowing for the week ended Wednesday was $1.2 billion. That was the highest since the attacks of Sept. 11, 2001, the Fed said in a report Thursday. On Wednesday alone, the borrowing reached $2 billion, the Fed said. The report offered the best look so far at how banks were using the "discount window" after the Fed's announcement Friday that it was cutting rates to banks for those loans.

Fate of Home Depot unit sale is in doubt

Talks over restructuring a $10.3 billion deal to sell Home Depot Incorporated's wholesale distribution business went down to the wire Thursday, the expected closing date for the agreement. The Atlanta-based retailer has hinted that the deal could fall through. Alternatively, Home Depot may have to lower the price. A spokeswoman declined to comment on whether the deal will be completed. Investors were edgy, sending Home Depot shares down 75 cents, or 2.2 percent, to $34.02.

New Sony device adds DVR capability to PS3

Sony Corp. took another step to lure new customers for its high-end PlayStation 3, saying it would sell a device to let users record live television that can be stored on the game console or transferred to the PlayStation Portable for later viewing. The combined television tuner and personal video recorder, dubbed PlayTV, is aimed at helping Sony boost sales of its high-end gaming console as well as its portable gaming unit. Sales are scheduled to start in Europe early next year.

Glitch affects Xbox 360 racing controllers

Microsoft Corp., facing its second Xbox 360 headache of the summer, will replace parts of its Wireless Racing Wheel video game controllers after 50 reports that they overheated and released smoke. The $130 steering wheel-shaped controllers mimic the physical sensations of race car driving for games such as "Forza Motorsport 2." When the unit is plugged into an electrical outlet, its power adapter can overheat, Microsoft said, adding that it's safe to continue using the gadgets with battery power.