Although it failed in both of its attempts to acquire Lear Siegler Inc., the investor group that started the bidding war for the Santa Monica conglomerate two months ago turned a tidy, $46.4-million gross profit for its unsuccessful efforts.
Wednesday, two days after AFG Partners withdrew its second bid for tax reasons, the investors soothed their disappointment with a hefty $8.4-million gross profit from the sale of Lear stock it acquired in its latest acquisition attempt.
Last month, the partnership reported a gross profit of about $38 million when Lear Siegler agreed to be acquired by Wickes Cos. and Wickes bought the partnership's nearly 1.8 million Lear shares for $91 each. Wickes later ran into trouble financing the deal, and AFG Partners began accumulating more stock for a second run at Lear Siegler.
On Wednesday, the partnership--which bought 850,000 shares last month for $80.09 apiece--sold the stock for $90 per share. Although the price was lower than the $92 per share set by Lear's agreement to be acquired by Forstmann Little & Co., the partners said they wanted to sell this month so the profits will be taxed at the 1986 rates and not under new tax law.