Lear Corp and Carl Icahn

Recently, famous shareholder activist Carl Icahn offered a buyout proposal to Lear Corp for $36 a share.Lear Corp, a supplier of automotive parts has been hit hard by the turmoil in the american automotive industry and whose stock price has been battered during the past year.However, the business is still profitable and another major shareholder, Richard Pzena, rebuked Icahn's offer of $36 a share as " low".Using his own valuation metrics, Pzena told other shareholders that the Lear's intrinsic value was roughly about $60 a share.Now , Pzena is well respected investor who follows a " Ben Graham " approach and known for his outstanding track record.However, the offer is also highly unusual for Carl Icahn who is known to buy sizable stakes in companies rather than buying out the company entirely.Clearly, Lear is undervalued and deserves more attention on investors' radar.Also, its shaping to be an interesting battle between these two respected investors and their schools of thought.