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Stockholders at automotive interiors group Lear Corporation have rejected a "merger" bid by the private equity group American Real Estate Partners led by the influential billionaire Carl Icahn.

The stockholders, which included some investment funds not previously known for taking strong stands in takeover deals, went against the Lear board's advice and turned down a revised AREP offer that would have valued the company at $3 billion.

One of the funds was quoted after the meeting as saying that it felt AREP's offer undervalued the group by about 50 per cent.

Lear, which makes automotive seating and other interiors equipment, said the rejection of the AREP deal meant the group would continue to operate as a standalone company.

Chairman and CEO Bob Rossiter said: "What we can take away from this proposed transaction and ultimate vote is that both Mr Icahn and our present stockholders share a common positive view of Lear's long-term prospects."

Lear has more than 90,000 employees in 236 plants in 33 countries. The company has suffered from downturn in North America and from the difficulties at major groups such as General Motors.