Lear Has Some Explaining to Do

This column was originally published on RealMoney on Feb. 12 at 9:26 a.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Carl Icahn is a value investor. He buys assets on the cheap. If he doesn't get a deep discount, then he passes up the purchase.

Before the market opened on Feb. 5, Icahn offered $36 per share in a buyout offer for Lear (LEA Quote). That's less than a 4% premium over the prior closing price of $34.67. The stock rose in anticipation of higher offers until Feb. 8, when trading was halted at $40.07. Lear announced the next morning that it was going to accept the $36 offer.

It's fair to say that Lear's board of directors is familiar with Icahn. With ownership of 17.8% of Lear's shares, he is the company's largest shareholder. Just three months ago, the company sold a private placement of stock to Icahn for $200 million. Also, Lear gave Icahn a seat on its board of directors. ...