From Home Furnishing Business
Tempur Sealy Adopts Rights Plan in Wake of Stock Slide
Bedding producer Tempur Sealy International (NYSE: TPX), whose stock price has been hammered since it announced last week it no longer would sell products to Mattress Firm, said its board of directors has approved a stockholder rights plan to protect the company against hostile takeover bids.
The board said the rights plan “will ensure that the Board of Directors remains in the best position to discharge its fiduciary duties to Tempur Sealy and its stockholders. (It) is not intended to interfere with any sale, merger, tender or exchange offer or other business combination approved by the Board of Directors. Nor does the Rights Plan prevent the Tempur Sealy board of directors from considering any offer that it considers to be in the best interest of Tempur Sealy's stockholders.”
Under the rights plan, shareholders would have the right to acquire additional Tempur Sealy shares only if a person or group (including a group of persons who are acting in concert with each other) acquires beneficial ownership of 20% or more of Tempur Sealy's common stock in a transaction not approved by the board of directors.
Shareholders will receive the right to acquire one share of stock for each share they own.
Tempur Sealy’s stock was trading at more than $65 per share on Jan. 27, shortly before the Mattress Firm announcement was made. Since then, the price has fallen to less than $45 per share in heavy trading. It closed yesterday at $42.90.