Law Offices of Howard G. Smith Announces Continued Investigation of Sealy Corporation
March 30 2012 - 9:30PM
Business Wire
Law Offices of Howard G. Smith announces that it is
investigating potential claims against Sealy Corporation (“Sealy
Corp.” or the “Company”) (NYSE:ZZ) and its board of directors
concerning possible breaches of fiduciary duties by the Company or
its fiduciaries. Sealy Corp. engages in the manufacture and
marketing of bedding products, including mattresses and mattress
foundations under the Sealy, Sealy Posturepedic, Stearns &
Foster, and Bassett brand names.
The investigation concerns a letter sent March 11, 2012 to the
Company’s board of directors by H Partners Management, LLC (“H
Partners”) – which owns approximately 14.5% of the Company’s
outstanding shares – expressing concern that the Board has been
advancing the interests of Kohlberg Kravis Roberts & Co. L.P.
(“KKR”) over the interests of all Sealy Corp. shareholders. As of
November 27, 2011, KKR owns approximately 46% of Sealy Corp.'s
outstanding shares.
According to an article published March 12, 2012 by The Wall
Street Journal, H Partners’ letter complains that KKR receives
“disproportionate representation of at least 78% on Sealy’s Board,
including three direct representatives on the board,” while the
53.8% non-KKR owners of the Company have no board representation,
and the Company is saddled with “high debt, bad management” and
“high fee payouts.”
Subsequently, Sealy’s third-largest shareholder, FPR Partners,
raised similar issues in a letter sent to Sealy director Gary Morin
on March 29, 2012. In its letter, FPR Partners, which owns 7.7% of
Sealy, echoed H Partners’ earlier stated concerns regarding
“immense value destruction, lack of minority shareholder
representation and excessive fees paid to one shareholder.”
If you purchased shares of Sealy Corp. and still hold those
shares, if you have information or would like to learn more about
these claims, or if you wish to discuss these matters or have any
questions concerning this announcement or your rights or interests
with respect to these matters, please contact Howard G. Smith,
Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike,
Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215)
638-4847, Toll Free at (888) 638-4847, or by email to
howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
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