Icahn Enterprises to buy rest of Federal-Mogul for $9.25/share

EghtesadOnline: Billionaire Carl Icahn's investment firm, Icahn Enterprises LP, said it would buy the remaining 18 percent of auto parts maker Federal-Mogul Holdings Corp for $9.25 per share, at a time when a slide in crude prices weighs on its energy business.

News ID: ۷۳۶۶۹۰

07 September 2016

Icahn Enterprises, which bought auto parts retailer Pep Boys-Manny Moe & Jack for $1 billion in February, made an initial buyout offer of $7 per share for Federal-Mogul in February and raised it to $8 in June.

According to Reuters, the revenue from the energy business, Icahn Enterprises' largest business until 2014, fell 13 percent to about $5.44 billion in 2015 while the automotive business rose 13.2 percent to $7.85 billion.

The offer for Federal-Mogul represents a premium of 86 percent to the stock's close on Feb. 26, the last trading day before Icahn Enterprises made the initial buyout.

Icahn Enterprises will pay about $282 million for the 18 percent stake, according to Reuters calculations.

On completion of the transaction, Federal-Mogul will be an indirect wholly owned subsidiary of Icahn Enterprises.

Federal-Mogul has accepted the offer.