IRobot-Amazon Deal Path Gets Muddied by Antitrust Concerns

Traders are on edge about the outcome of Amazon.com Inc.’s proposed takeover of iRobot Corp. after a competition warning from Europe’s antitrust watchdog cast doubts on the deal’s path to closing.

The robot-vacuum maker’s stock was whipsawed this week and now trades around $35, more than 30% below Amazon’s $51.75-per-share offer Tuesday. The European Commission in Brussels smashed hopes for a straightforward approval in the region — initially reignited by a Reuters report — after issuing a so-called statement of objections.

The outlook for iRobot without an Amazon deal is bleak — an informal poll of a half-dozen ...