As I covered last week, Carl Icahn increased his bid for Lear (NYSE: LEA) to $2.9 billion. As I tried to make obvious in my post this price was still considered inadequate by the majority of the "smart money" in the stock. Yesterday the expected was made official: shareholders rejected the deal. As it was noted on Deal Journal, rejecting buyouts is a rare occurrence in today's day and age. In fact, this is only the 8th deal to be rejected by US shareholders since 2003, during which more than 1,000 deals transpired.
Although Icahn didn't get Lear, I don't think he's too miserable -- he still stands to receive the equivalent of roughly $25 million simply for trying to buy the company! Yes, that's right, shareholders are going to dish out $12.5 million in cash and 335,570 shares (roughly worth $12.5 million) simply because the under-bidding Carl Icahn tried to steal their company, with management's support --- another example of great leadership in American business closely succeeded by Whole Foods CEO John Mackey.
Despite the rejection, Icahn still makes out well
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