Lear Corporation (NYSE:LEA) shares rose $4.34, or 12.52%, to $39.01 in early trading today after Carl Icahn's American Real Estate Partners LP made an offer to acquire the company at $36 per share in a Schedule 13D/A filing with the SEC. The proposal letter was sent on Friday evening and the terms of the deal were discussed with key senior executives over the weekend. While there are no guarantees that any transaction will ultimately result, the substantial premium paid and 17% stake Carl Icahn owns in the company both make it extremely likely.

The move comes after Carl Icahn had amassed a 16% stake in the company back in November, which he acquired at around $23 per share. He reasoned that troubled auto parts suppliers could be bought cheaply and restructured to boost profits. Lear lost $2.1 billion over the past two years, but said it planned to focus on more profitable manufacturing such as seats and electrical systems. Since receiving antitrust approval to boost his stake to 16%, the stock has risen from $23 to $33 before today's buyout at $36. This was definitely an interesting stock to follow since we initiated coverage, and we continue to follow other companies that this billionaire investors is involved with.

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