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Lear's go-shop period ends without receipt of more favorable proposal under agreement with Icahn affiliate
By Lisa Kerner
Charlotte, N.C., May 31 - Lear Corp., in response to the Delaware court's request for an update, said it is no longer engaged in discussions with any parties regarding a potential proposal for Lear with more favorable terms than contained in the merger agreement with American Real Estate Partners, LP, an affiliate of Carl Icahn.
In its letter to the Court of Chancery of the State of Delaware in and for New Castle County, Lear said that during its 45-day go-shop period, its financial advisers contacted 41 parties, including 24 financial sponsors and 17 potential strategic buyers.
At the end of the go-shop period, no entity had made an acquisition proposal, according to a form 8-K filing with the Securities and Exchange Commission.
Under the merger agreement, Lear was allowed to continue ongoing discussions after March 26 with a group consisting of Tata Autocomp Systems Ltd. and two private equity firms. Tata's private equity partners later withdrew from consideration of an acquisition proposal. Without co-investors and after several delays, Tata informed Lear on May 30 that it had decided not to continue considering an acquisition proposal for the company, the filing stated.
"To date, all of Lear's extensive efforts have not yielded even a non-binding proposal and, as of today, Lear is not in discussions with any third party regarding a potential acquisition proposal on more favorable terms than contained in the AREP merger agreement," the letter to the court, included in the SEC filing, stated.
Lear is an automotive interior systems and components supplier located in Southfield, Mich.
New York-based American Real Estate Partners is a diversified holding company.
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