Shares in Lear Corporation rose yesterday on news that a private investor has made a bid to takeover the company.
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Following discussions with American Real Estate Partners, an affiliate of Carl C Icahn has made an offer to acquire all of the issued and outstanding shares of Lear Corporation for $US36.00 per share in cash, Lear said in a statement.
Lear’s board is expected to formally consider the acquisition proposal following the conclusion of on-going negotiations.
The acquisition proposal contemplates that Bob Rossiter, Lear’s chairman and CEO, and the rest of the senior management team will remain with the company.
Lear has already sold its loss-making interiors business and that is scheduled to be merged into Wilbur Ross’ interior business in March. This means American Real Estate Partners would be acquiring a seats and electronics business.
Icahn already has one representative on Lear’s board, Vincent Intrieri. According to Automotive News, Icahn also is poised to be the controlling shareholder of Federal-Mogul when it emerges from bankruptcy this spring. Last year, he acquired about $101m in debt in drivetrain products maker Dana, which also is operating under Chapter 11 bankruptcy protection.
