Mattress Company Tempur-Sealy Amends Stockholder Rights Plan

Mattress company Tempur-Sealy International Inc. said Wednesday that its board has amended its stockholder rights plan to add a provision that would allow it to accept a takeover offer if it were viewed as being in the company's best interests. The board has added a qualified offer stockholder exemption provision to its rights plan, the company said in a statement. The board first adopted the rights plan on Feb. 8, adding a popular tool used by companies to avoid a hostile takeover. The new provision means "we believe the rights plan reaches an appropriate balance between protecting our stockholders from coercive and unfair takeover attempts and current best practices in corporate governance that give stockholders a voice in determining whether a particular acquisition offer is in their best interests," said Chief Executive Scott Thompson. Shareholders will vote on the plan at the company's 2017 annual shareholder meeting. Shares were not yet active premarket, but have fallen 35% in the year to date, while the S&P 500 has gained 5.7%.