Lear Corporation: Icahn Offers Buyout, Large Holder Pzena Opposes

Lear Corporation (LEA) disclosed yesterday that American Real Estate Partners LP, an affiliate of Carl Icahn, made an offer to acquire the company for $36.00 per share in cash. Lear said it's board will formally consider the proposal and noted that the proposal contemplates that Bob Rossiter, Lear's chairman and CEO, and the rest of the senior management team will remain with the Company.

In November we noted that Icahn received antitrust OK to boost his stake in Lear.

Pzena Investment Management LLC announced today that, by letter dated February 5, 2007, it has informed the Independent Directors of Lear Corporation of its strong opposition to the possible sale of the Company to Carl Icahn's American Real Estate Partners LP.

Pzena currently holds on behalf of its clients 6,805,829 shares, or 10.1%, of Lear Corporation.

The firm said:

"Our analysis suggests that earnings are likely to recover to more than $4.00 per share over the next few years from consensus analyst estimates of $2.00 per share for 2007. Consequently, we believe the company's value to be closer to $60 per share."