Lear Corporation has said that the solicitation period under its merger agreement with American Real Estate Partners (AREP), an affiliate of Carl Icahn, has expired, without it having received an acquisition proposal from another party.
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As permitted by the merger agreement, Lear will continue on-going discussions with those parties who had expressed an interest in exploring a possible acquisition proposal prior to the expiration of the solicitation period, the components maker said in a statement.
“No assurance can be given that such discussions will result in an alternative acquisition proposal,” Lear said.
Lear also said that a US statutory waiting period for the review of the proposed merger with AREP has now expired.
Lear is one of the world’s largest suppliers of automotive interior systems and components with annual net sales of $US17.8bn in 2006.
Earlier this month, its board recommended that shareholders vote in favour of a buyout offer valued at about $US2.8bn from a group affiliated with billionaire investor Icahn.
Under an agreement proposed in February, Icahn-controlled American Real Estate Partners is paying $US36 a share, and Lear has said that amounts to about $2.8bn. The buyers would also assume about $2.5bn in debt.
