Auto parts manufacturer Lear has agreed to increase its share buyback program and add a member in its board in a bid to avoid a proxy war with investors Oskie Capital Management LLC and Marcato Capital Management LLC.
Following its repurchase of $200 million shares in the first three months of this year, Lear said that it buy back the remaining $800 million it its share buyback program in the next 12 months. Recently, Lear had announced that it would be completing the program by the end of next year.
Lear had $918 million cash and equivalents as of December 31, 2012 and outstanding zero balances in short-term. However, it has $1.37 billion liabilities for long-term.
The company, which has been planning for a new $750 million buyback program once the current plan is done, has been valued at more than $5 billion.
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