Automotive seating and electric systems manufacturer Lear Corp. and hedge fund Marcato Capital are using outside PR counsel as Marcato targets the company's board and management.

Marcato, which has a 5.6% stake in Lear teamed with Oskie Capital Management, says Lear is "dramatically" overcapitalized with a pile of cash the hedge fund says should be used to buy back shares. The fund, which went public with its criticism and suggestions this week, is working with Kekst and Company for communications. Kekst managing directors Jeremy Fielding and Thomas Davies advise Marcato.

Lear has engaged Joele Frank, Wilkinson Brimmer Katcher for PR support. The Southfield, Mich.-based company responded to Marcato's disclosures by pointing to an acceleration of a $1B share repurchase program and 21% increase in its quarterly dividend. "At Lear, we are focused on value creation for all of our shareholders," the company said in a statement.

Joele Frank partners Matthew Sherman and Andrew Siegel are counseling Lear.
Lear went through a four-month Chapter 11 reorganization in 2009

The hedge fund, which wants to add new board members but said it is willing to talk with both Lear's chairman and CEO, said the buyback and dividend measures are insufficient and dubbed the board's choices "parsimonious."

Marcato is led by Mick McGuire, dubbed a protégé of hedge fund titan Bill Ackman by the Wall Street Journal.

Lear posted third quarter 2012 revenue topping $3.5B on net income of $121.4M.