Shareholders rebuff Icahn''s bid for Lear

Lear Corporation shareholders have rejected a $2.9-billion buyout offer from Carl Icahn, who owns nearly 16 per cent in Lear, the maker of automotive parts including car seats and door panels.

The billionaire investor''s American Real Estate Partners had made an offer worth $37.25 a share, and said it would help the firm achieve its long-term expansion plans.

Lear said the offer was not supported by a majority of shareholders who had voted at the annual meeting, even though company officials had indicated that the offer was an attractive one.

Those opposed to the deal, including three shareholder advisory services, Institutional Shareholder Services, Proxy Governance and Glass Lewis, last week repeated earlier recommendations for shareholders to reject the proposal, as the company was worth much more.

Richard Pzena, who holds 8.6 per cent of Lear shares through Pzena Investment Management LLC, the largest stake after Icahn''s stake, had also opposed the deal.