Lear Buyout Scrapped

Both Icahn and a spokesman for Lear could not be reached for comment on this story.

"In the end, while there were many different viewpoints on the transaction, the decision came down to each individual owner's investment perspective, outlook for the future and assessment of the risks," said Rossiter in a press release. "What we all can take away from this proposed transaction and ultimate vote is that both Mr. Icahn and our present stockholders share a common positive view of Lear's long-term prospects."

Shares of Lear rose 30 cents Monday to $37.20, a sign that investors are optimistic about its long-term prospects, despite the current difficulties in the U.S. auto industry. Lear has twice increased its forecast for 2007 core operating earnings and it sold its troubled interior plastics division to a joint venture controlled by billionaire investor Wilbur Ross.

Pzena says he is disappointed in the company's board of directors, but he sounded a note of confidence in Lear's management team.

"They'll do a great job as long as they stick to running the business instead of trying to do deals," he says.

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