Try running this:

sudo rm /var/lib/apt/lists/us.archive.ubuntu
.com_ubuntu_dists_natty_main_binary-i386_Packages

See if it that clears it.
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** Changed in: update-manager (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/828250

Title:
  Update Manager is not working and returns the following error message:
  E:Encountered a section with no Package: header, E:Problem with
  MergeList /var/lib/apt/lists/us.archive.ubuntu
  .com_ubuntu_dists_natty_main_binary-i386_Packages, E:The package lists
  or status file could not be parsed or opened.

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