Sleep Country holders mull Fairfax’s offer as stock rises above it

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Sleep Country holders mull Fairfax’s offer as stock rises above it
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Sleep Country Canada Holdings Inc. shareholders are weighing whether they’ll vote in favor of Fairfax Financial Holdings Ltd.’s takeover bid, a deal that analysts say is well-timed for the buyer.

Monique Mulima and Monique Mulima, Bloomberg NewsStewart Schaefer, CEO of Sleep Country Canada , joins BNN Bloomberg to discuss the company's acquisition deal.

Samir Taghiyev, portfolio manager for Canadian small-cap equities at​​​​ Mawer Investment Management, said the timing is “not the most ideal,” though he sees the price as being close to fair. Mawer is one of the largest Sleep Country shareholders, according to data compiled by Bloomberg, holding about 5% of the shares as of the end of June.

Mattress sales have slowed since the pandemic as consumers deal with inflation and higher rates. Sleep Country shares reached nearly $41 in November 2021, but closed at $27.28 before the takeover offer.

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