Southfield, Michigan (ots-PRNewswire) - The Board of Directors of
Lear Corporation (NYSE: LEA) yesterday approved a share repurchase
program and declared a dividend distribution of one Preferred Share
Purchase Right on each outstanding share of its common stock.
The share repurchase authorization, which extends for a 24-month
period, allows the discretionary repurchase of up to 6.7 million
"Consistent with our overall goal to enhance long-term shareholder
value, this repurchase program is a very effective way to return
value to our shareholders," Kenneth L. Way, Lear Corporation Chairman
and Chief Executive Officer, stated. "This decision by the board
demonstrates our confidence in the Company's future and our
commitment to our shareholders."
The Company said it plans to purchase shares from time to time in
the open market or through privately negotiated transactions. The
extent to which the Company repurchases its shares and the timing of
such purchases will depend upon prevailing market conditions,
alternative uses of capital and other factors. The Company
anticipates that it will fund the program primarily through the sale
of non-core assets.
"The Preferred Share Purchase Rights are designed to assure that
all of our stockholders receive fair and equal treatment in the event
of any proposed takeover of the Company and to guard against abusive
tactics to gain control of Lear Corporation without paying all of our
stockholders a reasonable premium for that control," Way said. "The
Preferred Share Purchase Rights are not being adopted in response to
any specific takeover threat."
The Preferred Share Purchase Rights are intended to enable all
Lear stockholders to realize the long-term value of their investment
in the Company. The Preferred Share Purchase Rights will not prevent
a takeover, but should encourage anyone seeking to acquire the
Company to negotiate with the Board prior to attempting a takeover.
The Preferred Share Purchase Rights will be exercisable only if a
person or group acquires 20% or more of Lear Corporation's common
stock or announces a tender offer the consummation of which would
result in ownership by a person or group of 20% or more of the common
stock. Each Preferred Share Purchase Right will entitle stockholders
to buy one one-thousandth of a share of a new series of junior
participating preferred stock at an exercise price of $125.
If a person or group acquires 20% or more of Lear Corporation's
outstanding common stock, each Preferred Share Purchase Right will
entitle its holder (other than such person or group) to purchase, at
the Preferred Share Purchase Right's then-current exercise price, a
number of Lear Corporation's common shares having a market value of
twice such price. In addition, if Lear Corporation is acquired in a
merger or other business combination transaction after a person has
acquired 20% or more of the Company's outstanding common stock, each
Preferred Share Purchase Right will entitle its holder to purchase,
at the Preferred Share Purchase Right's then-current exercise price,
a number of the acquiring company's common shares having a market
value of twice such price. The acquiring person or group will not be
entitled to exercise these Rights.
Prior to the acquisition by a person or group of beneficial
ownership of 20% or more of the Company's common stock, the Preferred
Share Purchase Rights are redeemable for one cent per right at the
option of the Board of Directors.
The Board of Directors is also authorized to reduce the 20%
thresholds referred to above to not less than 10%.
The dividend distribution will be made on March 17, 2000, payable
to stockholders of record on that date, and is not taxable to
stockholders. The Preferred Share Purchase Rights will expire on
March 1, 2010.
A Fortune 200 Company, Lear Corporation is one of the world's
largest automotive suppliers, with 1999 sales of $12.4 billion. The
Company's world- class products are designed, engineered and
manufactured by more than 120,000 employees in over 300 facilities
located in 33 countries. Information about Lear and its products is
available on the Internet at http://www.lear.com
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Actual results may differ materially from the anticipated results as
a result of certain risks and uncertainties, including but not
limited to general economic conditions in the markets in which Lear
operates, fluctuations in the production of vehicles for which the
Company is a supplier, labor disputes involving the Company or its
significant customers, risks associated with conducting business in
foreign countries and other risks detailed from time to time in the
Company's Securities and Exchange Commission filings.
ots Original Text Service: Lear Corporation
Investor Relations, Derek Fiebig, (USA) 248-447-1624, or
Media, Karen Stewart-Spica, (USA) 248-447-1651,
both of Lear Corporation
Company News On-Call:
fax, 800-758-5804, ext. 518304
Web site: http://www.lear.com
Original-Content von: Lear Corporation, übermittelt durch news aktuell