Shareholder Protests Tempur-Pedic-Sealy Deal
October 2, 2012,
NEW YORK-H Partners Management has sent a letter criticizing the proposed acquisition by Tempur-Pedic of Sealy to the Sealy board of directors.
The letter was also filed with the U.S. Securities and Exchange Commission. H Partners is Sealy's second largest shareholder, owning 16.6 percent of the outstanding shares. In the letter, dated Sept. 27, H Partners said, "Today, we were shocked to observe that this board, after selling shares to public shareholders in April 2006 at $16 per share, is contemplating a sale of the company at a meager $2.20 per share."
H Partners said it is "extremely troubled" by the board's failure to consider alternative bids for Sealy. "The Board must either (1) conduct a thorough sale process and solicit bids from all potential acquirors, or (2) commit to maximizing long-term value by appointing a capable and proven management team in consultation with all shareholders," the letter said.