Lear Investors Seek Board Seats

Two shareholders plan to nominate a slate of candidates for Lear Corp.'s board as part of an effort to boost the company's share price.

San Francisco-based Marcato Capital Management LLC and New York City-based Oskie Capital Management LLC own a combined 5.6% stake in Lear. The firms tell the U.S. Securities and Exchange Commission they bought the stock because they believe it is undervalued and have urged the company to increase stock buybacks.

Lear said on Feb. 1 it would expand its share repurchase program to $1 billion over the next three years from $200 million. After talking with Marcato and Oskie last wee, the company declared it would accelerate its share repurchase program to include a $600 million buyback this year. Lear also disclosed plans to hike its quarterly dividend 21% to 17 cents per share.

Marcato and Oskie say they still intend to nominate directors. The shareholders plan to propose options that could involve the company's capital structure, board composition and corporate plans and strategy.