Cleaning & Maintenance Management Online

Sealed Air's top shareholder objects to Diversey deal

June 7, 2011

NEW YORK — Sealed Air Corporation''s largest shareholder objects to the company''s plan to purchase cleaning products maker Diversey Holdings Inc., according to a press release.

Davis Selected Advisors LP, an Arizona-based asset management firm that owns 27 percent of the packaging company''s shares, took the unusual step of issuing a regulatory filing late Friday to convey its reaction to Sealed Air''s June 1 announcement that it''s buying privately-held Diversey, the release stated.

According to the release, in a vaguely worded statement, Davis said it has "serious concerns" about the deal and "may oppose the proposed transaction."

While Davis stopped short of specifically threatening to reduce its stake in Sealed Air, it noted that it "reserves the right to sell all or a part of" its 42.6 million shares, the release noted.

Sealed Air on Monday declined to comment on Davis''s filing, but acknowledged that it has been trying to ease investors'' anxieties about the acquisition, the release added.

"We have been actively engaged in discussions with the financial community about why we believe this transaction represents an outstanding opportunity to generate growth and create meaningful value for our shareholders," the New Jersey-based company said in a written statement.

Click here to read the complete release.