Lear agrees to Icahn buyout offer

SOUTHFIELD, Mich., Feb. 9 (UPI) -- Auto-seating maker Lear Corp. said Friday it has agreed to U.S. investor Carl Icahn's $2.75 billion buyout offer but may solicit alternative proposals.

The $36-a-share deal by Icahn's American Real Estate Partners is expected to close by June, the Southfield, Mich., maker of auto seats, interiors and electronics said.

It reserved the right to solicit alternative proposals for 45 days.

Icahn, Lear's top shareholder, offered Monday to buy the 84 percent of Lear he did not own for about $2.75 billion in cash, or $5.3 billion including assumed debt.

"Following a very thorough review of the proposed transaction, our board unanimously concluded that the AREP offer was in the best interests of Lear's shareholders," Lear Chairman and Chief Executive Bob Rossiter said.

Fund-management company Pzena Investment Management LLC, which owns 10 percent of Lear stock, criticized Lear for backing Icahn's bid.

Co-Chief Investment Officer Richard Pzena said he would push the company to seek competing offers.

Lear stock fell $1.61 or 4.02 percent to $38.46 in late morning trading on the New York Stock Exchange.