SOUTHFIELD, Mich. (Sept. 7, 2016) — Billionaire investor Carl Icahn is buying the remaining shares of Southfield-based auto supplier Federal-Mogul Corp. in a deal valued at approximately $281 million.
Mr. Icahn, through a subsidiary of his firm Icahn Enterprises LP, entered into an agreement Sept. 6 with Federal-Mogul to acquire the remaining 18 percent of its outstanding stock. Icahn Enterprises offered to pay $9.25 per share in an all-cash deal — which represents a premium of 86 percent over supplier's share price of $4.98 on Feb. 26, when Icahn first proposed the buyout for $7 per share.
The deal has been approved unanimously by both companies' board of directors, Federal-Mogul said. Federal-Mogul shareholders will vote to approve the transaction at an undetermined future date.
Upon approval, Federal-Mogul will become a privately held subsidiary of Icahn Enterprises and no longer be traded on the NASDAQ.
The bid to buy the minority stake comes after Federal-Mogul scrapped its plan in January to split the company into two separate public entities. Company officers pointed to market conditions as the culprit behind its decision not to split its aftermarket parts division from its powertrain division.
