The U.S. Federal Trade Commission on Monday sued to block Coach parent Tapestry’s $8.5-billion deal to buy Michael Kors owner Capri, saying it would eliminate “direct head-to-head competition” between the flagship brands of the two luxury handbag makers. In a statement, the FTC said the tie-up—which would create a company with about 33,000 employees worldwide—could reduce wages and employee benefits.