10:30 AM EDT, 04/17/2024 (MT Newswires) -- (Updates with FTC's comment in the fourth paragraph and recent stock move in the last paragraph.)

The US Federal Trade Commission is preparing to sue to block Tapestry's (TPR) potential $8.5 billion takeover of Capri Holdings ( CPRI ) , The New York Times reported Wednesday, citing two unidentified people with knowledge of the matter.

The FTC is scheduled to discuss the matter next week and determine whether to proceed with legal action, according to the report, which cited the people.

Tapestry, the maker of Coach handbags, announced in August it would acquire Capri for $57 per share in cash. The deal, which has been cleared by European Union and Japan regulators, would bring together the brands Coach, Kate Spade, Versace, Jimmy Choo and Michael Kors.

The FTC declined to comment, while Tapestry and Capri did not immediately respond to requests for comment by MT Newswires.

Tapestry's shares were 0.8% lower in recent trading, while Capri shares were down 0.2%.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)