Lear Corp, the auto parts maker avoided a proxy fight against Marcato Capital Management LLC and Oskie Capital Management LLC. This was achieved through an agreement to increase the pace of the buyback share program as well as add on another member of the board.
The company repurchased nearly US$200 million of its shares in the first quarter of 2013 and is on its way to buy back the US$800 million worth of shares in the next twelve months. The program is expected to complete the buy back by 2014.
In a statement, Lear Chairman Henry Wallace said, "Over the past two years, Lear has returned more cash to shareholders through dividends and share repurchases as a percentage of our market capitalization than anoy of our automotive supplier peers."
Lear is currently valued at US$5 billion as well as cash and equivalents amounting to US$918 million as of December 31. It has no short term debt balances while its long term debt amount to US$1.37 billion.
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