A battle for control of bed maker Silentnight is under way after takeover talks with its majority shareholder collapsed.

Silentnight revealed it was in discussions with Famco, a family trust set up by late founder Tom Clarke and owner of 50.5 per cent of the business, last month.

Famco offered an indic-ative price of 190p a share, valuing Silentnight at about £89 million.

But it emerged Famco had withdrawn from the discussions and all talks had been terminated.

Silentnight chief executive Bill Simpson said the offer undervalued the company and he was not able to recommend it to the other shareholders.

Last night, the group's shares closed at 208p, giving it a market value of about £97 million.

Famco hit back by accusing management of failing to provide a plan of action and wants to replace Mr Simpson and chairman Keith Ackroyd.

The trust, which has called an extraordinary meeting, said: "These changes are necessary to attempt to preserve the value in the business for the benefit of all Silentnight shareholders."

Mr Simpson conceded that, as Famco was the majority shareholder, there was a certain inevit-ability about his departure.

He called the move disappointing.

He said: "The important thing to get into the public arena is the price does not just undervalue the company, it substantially undervalues it.

"My job at the moment is still to do what is right for the company and the other shareholders.

"Throughout the process, it made it clear that if it didn't get its way one way, there were other routes open to it and, with 50.5 per cent of the shareholding, there are."

Famco is seeking shareholder approval for its 190p a share offer.

Under the Takeover Code it must wait six months before putting in another offer for the business.

Silentnight has three weeks to respond to the request for an EGM and then a further three weeks to inform shareholders.