Federal-Mogul Shares drop after Icahn had announced that he may pull stock offer. Icahn Enterprises had been steadily building up its holdings on the auto parts retailer market.
Earlier this February, Icahn Enterprises had actually purchased well known auto parts supplier Pep Boys: Manny, Moe & Jack for a total amount of 1 Billion dollars. Pep Boys: Manny, Moe & Jack was already struggling at that moment when Icahn Enterprises was able to to outbid Bridgestone Corporation, a multinational manufacturer of auto and truck parts based in Fukuoka, Japan. During February, Icahn Enterprises had initially a buyout offer for Federal-Mogul for $7 per share, and eventually raised it up to $8 in June.
Federal-Mogul Shares had dropped 5 percent on Wednesday, this occurred when Carl Icahn had considered pulling his $9.25 per share offer on Federal-Mogul, Reuters had reported. It appears that Mr. Carl Icahn still haven't made a firm decision on whether to pull its share, or not too. Icahn Enterprises had mentioned that it is going to purchase the remaining 18 percent of Federal-Mogul in September, and that it did not already own worth $280 million, or 9.25 USD per share.
According to Fortune, Federal-Mogul had already agreed and accepted the offer. However, some share holders are actually resisting. Gabelli Asset Management is willing to offer 13 USD per share for the Federal-Mogul, they actually own 36 percent of the shares which isn't owned by Icahn.
Icahn Enterprises would pay about an estimated $282 million for the 18 percent stake. If Icahn Enterprises ever seals this transaction, Federal-Mogul would end up being an indirect wholly owned subsidiary for them.
Carl Icahn has been considered the Donald Trump of Finance. He was also a supporter of the recent President-elect business tycoon. Aside from owning a huge percent of Federal-Mogul Shares, Carl Icahn also happens to be the current Chairman of the Board of the company.
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