Tapestry’s $8.5 Billion Capri Deal Faces Planned FTC Lawsuit (1)

US antitrust enforcers are preparing a lawsuit seeking to block handbag maker Tapestry Inc.’s $8.5 billion planned takeover of rival Capri Holdings Ltd., according to a person with knowledge of the matter.

The Federal Trade Commission is expected to file a lawsuit as soon as April 22, according to the person, who asked not to be named discussing a private matter.

In a statement, a Tapestry representative said, “We strongly believe this is a deal that deserves to clear as it is pro-consumer and pro-competitive.” Tapestry’s and Capri’s brands compete in a dynamic luxury market, she added, and ...