Furniture Brands (FBN) Surges On Buyout Interest From Sun Capital
Shares of Furniture Brands (NYSE: FBN) are up over 25% in early action Thursday after 9.4% holder SCSF Equities (Sun Capital) said it is interested in acquiring the Company for cash consideration at a substantial premium to its latest closing stock price of $10.18 per share.
Sun Capital said they would like the current management to retain their leadership roles.
Sun Capital said Furniture Brands' inability to implement effective operating strategies has placed it at a competitive disadvantage. The firm said a more aggressive restructuring is needed in this difficult environment. They said optimal remedial strategy for Furniture Brands can be best executed as a private company.
Sun Capital also said there appears to be strategic interest in the company, noting that Hong Kong-based furniture company Samson Holding accumulated a large stake in Furniture Brands and submitted a proposal to the Board for a potential transaction that was rejected.
Sun Capital said time is not on the company's side, saying a long drawn out process to explore strategic alternatives is not in the best interest of shareholders.
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