SOUTHFIELD, Mich. (Dec. 16, 2016) — Billionaire investor Carl Icahn has extended his offer to gain total control over Southfield-based Federal-Mogul Holdings Corp. as the previous deadline expired.
Mr. Icahn, through a subsidiary of his firm Icahn Enterprises L.P., agreed in September with Federal-Mogul to acquire the remaining shares the firm does not own — approximately 18 percent. Mr. Icahn offered to pay $9.25 per share in an all-cash deal, which represents a value 86-percent higher than the supplier's share price of $4.98 on Feb. 26, when Mr. Icahn first proposed the buyout for $7 per share.
Mr. Icahn later extended the deadline to Dec. 15. When the supplier didn't reach an agreement, Mr. Icahn extended the offer again Friday to Jan. 4, 2017.
In November, Mr. Icahn had only secured commitments for about 23 percent of the remaining shares ahead of the deadline, Icahn Enterprises said in a statement. The firm needed 51-percent majority of the remaining shares to take full control of the company.