retail news in context, analysis with attitude

The Cincinnati Business Courier is reporting this morning about speculation in the investment community that Kroger "might be interested" in purchasing Whole Foods.

Neither company commented on the rumors, which suggested that Kroger could pay as much as $40 per share for Whole Foods stock that currently selling for around $29 per share.
KC's View:
I'm by no means an expert on such things, but this just doesn't seem terribly likely to me. Right now, Kroger is working to building market share in a deflationary environment, and one of the weapons it is using is an approach to organics that allows it to compete more effectively with Whole Foods. Plus, deflation is squeezing Kroger's numbers... which may not make it the best time to be spending billions on a competitor.

I just don't see this as making sense. It sounds more to me like speculation started by some analyst who wants to move stock prices and likes seeing his name in the Wall Street Journal. But perhaps there will be people smarter than I about such thing who will explain why I'm wrong about this.