Lear Shareholders Vote No on Icahn Offer
By Michelle Krebs July 16, 2007Shareholders of automotive supplier Lear Corp. rejected a $2.9 billion buyout offer led by billionaire investor Carl Icahn.
Icahn's American Real Estate Partners LP had slightly sweetened the offer, to $37.25 a share, or $2.9 billion, up from $36 a share, or $2.8 billion.
Still, critics, including some major shareholders who had advised shareholders to join them in voting against the sale, charge the offer remains too low. They contend company executives have put their own financial interests before those of shareholders.
Indeed, a Delaware judge, who stopped short of terminating the sale but required increased disclosures, criticized Learâs top executive for the way he negotiated with Icahn and raised concerns that top executives had cut the deal with Icahn to continue their employment and receive millions in financial incentives.
Lear, based in Southfield, Michigan, makes seats and electronic systems for every major automaker.
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