Select Comfort Votes Challenged

Posted by MCC on September 7th, 2009 at 02:45pm

Last week, shareholders of the Select Comfort bedding giant voted down a deal that would have gave Sterling Partners almost 53 percent ownership in the ailing company. The deal was narrowly rejected by a vote of 49.94 percent by shareholders.

This week, Sterling Partners filed suit in a Delaware court seeking a recount of the shareholders votes. And, asking for a temporary restraining order to keep Select Comfort from teminating the agreement. Sterling also wants the votes recounted by an additional third party.

The deal would have given Sterling the right to purchase 50 million shares in the company at 70 cents per share, or $35 million. Select Comfort and an existing shareholder, the Clinton Group have also asked for all records related to the voting and an additional independent audit.

Under Furniture News