Bloomberg News report
DETROIT (Feb. 29, 2016) — Federal-Mogul Holdings Corp.'s largest shareholder, activist investor Carl Icahn, has offered to buy the rest of the auto parts maker for $7 a share.
The board will appoint a committee of independent directors to review the offer, Federal-Mogul said in a statement today. The price is 41 percent above the stock's closing level on Feb. 26.
Mr. Icahn owns 82 percent of Federal-Mogul, which has a market value of $841.8 million. The automotive components supplier canceled plans in January to spin off its motor parts business, which was split off from the powertrain division in late 2014 in a strategy to enable acquisitions. The billionaire's Icahn Enterprises L.L.C. investment vehicle — which also controls car-parts, tires and automotive service retailer Pep Boys-Manny, Moe & Jack — said Feb. 29 that his Federal-Mogul takeover offer will depend on acceptance by a majority of other shareholders of the company.
This Bloomberg News report appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.
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