Icahn Hikes Offer for Federal-Mogul Again
Investor Carl Icahn has raised his offer to acquire outstanding shares in Federal-Mogul Holdings Corp. for the third time in seven months, this time for $10 per share.
His Icahn Enterprises LP already owns about 82% of the company, which supplies carmakers with pistons, bearings and valvetrain components and sell retail aftermarket parts under such brands as Anco (wiper blades), Champion (sparkplugs), Ferodo (brake components) and Sealed Power (engine parts).
Icahn has been trying to buy the remaining shares since late February, when he offered $7 per share. He raised his bid to $8 last June and to $9.25 in September. Federal-Mogul shares were at $4.98 the day before his initial offer. The stock closed today at $10.10.
Last December Icahn Enterprises outbid Bridgestone Corp. to acquire the Pep Boys auto parts retail chain for $1 billion. Icahn also purchased AutoPlus, another aftermarket retail network last year.
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