Sealy’s Directors, KKR Sued over Tempur-Pedic Bid

Investors charge the buyout shortchanges stockholders.

Sealy Corp.’s directors and controlling shareholder KKR & Co. were accused in an investors’ lawsuit of shortchanging the mattress maker’s stockholders by backing a $229 million buyout bid by rival Tempur-Pedic International Inc.

Tempur-Pedic, based in Lexington, Kentucky, agreed last month to pay $2.20 a share for Trinity, North Carolina-based Sealy to combine the two biggest publicly traded mattress companies. Investors allege Sealy and KKR executives didn’t shop around for the best price for the maker of Sealy Posturepedic mattresses and structured the deal to discourage other bidders.

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