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Lear accepts $2.8 billion bid from Icahn group

Auto parts supplier Lear Corp. said Friday that it has agreed to be acquired by a group affiliated with billionaire investor activist Carl Icahn for about $2.8 billion.
/ Source: The Associated Press

Auto parts supplier Lear Corp. said Friday that it has agreed to be acquired by a group affiliated with billionaire investor activist Carl Icahn for about $2.8 billion.

Under terms of the deal, Icahn-controlled American Real Estate Partners LP is paying $36 a share, and a Lear spokesmnan said that amounts to about $2.8 billion.

That is more than $4 a share below its closing price of $40.07 on Thursday when takeover speculation drove Lear's price higher.

The buyers are also assuming about $2.5 billion in debt in the deal.

Under the terms of the agreement, Southfield-based Lear may solicit alternative proposals for 45 days from the execution of the agreement and intends to consider any such proposals with the assistance of its independent advisers.

Otherwise, the company said the deal is expected to close by the end of the second quarter.