The US competition watchdog has sued to block fashion accessory giant Tapestry's $8.5bn (£6.9bn) takeover of rival Capri. Tapestry owns handbag makers including Coach and Kate Spade, while Capri's brands include Michael Kors. The US Federal Trade Commission (FTC) said if allowed, "the deal would eliminate direct head-to-head competition between Tapestry’s and Capri’s brands". In response Tapestry said "the FTC fundamentally misunderstands both the marketplace and the way in which consumers shop". Together, the firms employ about 33,000 staff globally but the FTC argued the deal could reduce wages and their benefits. Coach and Kate Spade are known for what...