Sealy Board Faces Investor Suit Over $1.3B Tempur-Pedic Deal

Law360, Wilmington (October 2, 2012, 8:07 PM EDT) -- Sealy Corp.'s board was hit with a putative class action Tuesday alleging it catered to the company's largest shareholder, KKR & Co. LLP, in approving rival Tempur-Pedic International Inc.'s $1.3 billion bid for the mattress maker, leaving minority investors with a raw deal.

The suit, filed by Sealy shareholder Benjamin B. Clarke in Delaware Chancery Court, claims the offer undervalues the Trinity, N.C.-based company, but realizes the private equity firm’s goal of offloading its 44 percent stake in Sealy after “years of sapping the company’s resources.”...
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