Chinese rivals eye bids for top UK bed retailer Dreams

China's biggest memory-foam manufacturer Mlily and rival mattress maker King Koil China are set to go head-to-head in the auction for one of the United Kingdom's biggest bed retailers, Dreams, with bids expected in the range of 400 million pounds ($517 million), according to media reports.

Dreams' owner - London-based Sun European Partners, the European advisor to US-based private equity firm Sun Capital Partners - put the mattress company up for sale earlier this year and appointed investment bank Rothschild to run the auction.

The two Chinese groups are expected to compete against UK bed maker Silentnight, owned by HIG Capital, according to the Daily Telegraph. Silentnight already supplies mattresses to Dreams.