Reuters: Regulatory News: UPDATE 1-Another Sealy shareholder criticizes board, KKR

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UPDATE 1-Another Sealy shareholder criticizes board, KKR Mar 30th 2012, 12:36 March 30 | Fri Mar 30, 2012 8:36am EDT March 30 (Reuters) - Mattress maker Sealy Corp's third-largest shareholder joined another large investor in criticizing the company's board and its largest shareholder KKR & Co LP for the plunge in its stock price. FPR Partners, which owns 7.7 percent in Sealy, said it was "disappointed" by the company's response to shareholder concerns about "value destruction" and the lack of minority shareholder representation on the board. Earlier this month, hedge fund H Partners Management LLC -- Sealy's second-biggest stockholder with a 14.5 percent stake -- had blamed KKR for wiping out 90 percent of the mattress maker's value and saddling it with debt. Sealy had responded by defending the private equity firm and said H Partners' "combative and public discourse" was not helpful. "A 46 percent ownership stake in a public company should lead to very different governance than 100 percent ownership of a private company," FPR Partners said referring to KKR's stake in Sealy. Sealy, which was started by cotton gin builder Daniel Haynes in the late 19th century, was taken public by KKR two years after its bought it from another private equity firm, Bain Capital LLC, for $1.5 billion, in 2004. Since the company's initial public offering in 2006, Sealy shareholders have seen its equity value reduce by $1.3 billion, or about 90 percent.

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