Friday, February 09, 2007

Lear (LEA) Agrees To Be Acquired By Icahn Affiliate for $36 Per Share

We now have the news on Lear Corporation (NYSE: LEA). The company agreed to be acquired by Carl Icahn's American Real Estate Partners, L.P. affiliate for $36 per share.

So Icahn wasn't bluffing!

Many shareholders will likely be disappointed with the deal, especially the ones that ran the stock up to $40.07 on hopes of a higher offer. 10% shareholder Pzena Investment, which said the stock is worth $60, is already out against the deal. This could be a battle.

Other key items:

Under the terms of the agreement, Lear may solicit alternative proposals from third parties for a period of 45 days

If Lear accepts a superior proposal, a break-up fee would be payable to AREP.

Link to past reports on the situation

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