Clayton Homes to Accept Competing Bids

Clayton Homes Inc. said it would accept competing bids over the next two weeks to a $1.7-billion takeover offer from Warren Buffett’s Berkshire Hathaway Inc.

The move was approved by Berkshire and by Clayton shareholders at a special stockholders meeting at Clayton’s Maryville, Tenn., headquarters, where investors were set to vote on the Buffett deal.

Clayton has been struggling to win the support of some major shareholders that doubt the deal is the best value for investors, sources familiar with the situation said.

Clayton shares were unchanged at $12.98 on the NYSE, above the value of Buffett’s offer of $12.50 a share.