Lear Will Boost Share Buyback to Appease Dissidents

Lear Corp. says it has reached an agreement with activist investors Marcato Capital Management LLC and Oskie Capital Management LLC to satisfy their demand that the company return more money to shareholders.

Under the deal, Lear will accelerate its existing $1 billion share repurchase program. The company says it bought $200 million of its stock in the first quarter of 2013. Lear pledges to purchase the remaining $800 million over the next 12 months. When that plan is completed, the company will begin a new $750 million two-year buyback.

In return, Marcato and Oskie, which own a combined 5.6% Lear stake, have withdrawn their slate of three candidates for the company's board. The duo promises to support Lear's nominees at the company's annual meeting in mid-May.

Lear also agreed to expand its board to nine members from eight "as soon as practicable" after the annual meeting. The new director will be chosen by the company and Marcato and Oskie.