Furniture Brands (FBN) Surges After Large Holder Samson Holding Discloses Approach

Shares of Furniture Brands International Inc. (NYSE: FBN) are 29% higher after 14.9% holder Samson Holding Ltd. disclosed that they presented a proposal to the company in July this year with respect to a possible business combination transaction, which the company declined to pursue.

The firm noted that Furniture Brands is a major customer of Samson Holding and in a business that is complementary.

Samson Holding is the largest Hong Kong-based furniture maker.

From the Filing:

"The Shares acquired by the Reporting Persons were viewed by the Reporting Persons as an attractive strategic investment in the Issuer. Samson Holding presented a proposal to the Issuer in July this year with respect to a possible business combination transaction, which the Issuer declined to pursue. The Issuer is a major customer of Samson Holding and in a business that is complementary to the Reporting Persons’ businesses and/or investments. The Reporting Persons intend to review their holdings in the Issuer on a continuing basis and, depending on the price and availability of the Issuer’s securities, subsequent developments affecting the Issuer, the business prospects of the Issuer, general stock market and economic conditions, tax considerations and other factors deemed relevant, may consider various alternative courses of action and take any action deemed appropriate, including, but not limited to, the acquisition or disposition of the Issuer’s securities through open market transactions, seeking to acquire control of the Issuer through privately negotiated transactions, tender offers, exchange offers, mergers or otherwise, seeking board representation, or making proposals to the Issuer or its shareholders. The Reporting Persons may attempt to enter into discussions with the Issuer’s management, directors or other shareholders with respect to any of the foregoing. As part of their ongoing review, the Reporting Persons have engaged and/or may in the future engage, legal and financial advisors to assist them in such review and in evaluating strategic alternatives that are or may become available with respect to their holdings in the Issuer. Except as set forth in this Statement, none of the Reporting Persons has any present plans or proposals that relate to or would result in any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D."