Lear’s management considering split proposal

Lear Corporation has responded to a letter from investor Marcato Capital Management in which, according to media reports, the financier suggests the supplier be split in two.

In a statement issued on 3 February, Lear said it is open to views from shareholders and underscored that it has delivered top returns to investors while pursuing a “balanced strategy.” Last year, its stock gained 22%, beating the S&P 500’s 14% return, the company said.

The company added that the board and management team were open to the views of its shareholders and will review the suggestions submitted by Marcato Capital Management.

Activist investor Mick McGuire said Lear’s share price could surge by nearly 50% if the automotive supplier splits into two publicly traded companies, a proposal that Lear’s management said it was considering.

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Posted by Geoff Fisher on 17 March 2015

 

 

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