DETROIT, March 12 (UPI) -- A Lear Corp. employee lawsuit seeks to block U.S. investor Carl Icahn from buying the auto-seating maker, saying he undervalues the company.
The lawsuit, which seeks class-action status, also argues the deal would violate the Employee Retirement Income Security Act since it would have Lear's salaried and hourly retirement savings plans sell shares of company stock to Icahn's affiliate, The Detroit News reported.
ERISA prohibits "any transaction involving the sale or exchange of plan assets between a plan and a party in interest," the lawsuit states.
Lear of Southfield, Mich., agreed last month to be acquired by Icahn affiliate American Real Estate Partners LP for $36 a share, but created a 45-day period to accept competing offers.
The proposed acquisition involves about $2.31 billion in cash to buy the shares Icahn does not already own and $2.5 billion in debt assumption.
A Lear spokesman declined to comment on the lawsuit's accusations.
A Delaware judge said Feb. 28 he would wait until the 45-day period ends before hearing a separate shareholder challenge to Icahn's offer. Major shareholder Pzena Investment Management called Icahn's offer "ridiculously low."
