Federal-Mogul Holdings Corp (FDML): Billionaire Carl Icahn Raises Offer to Buy Remaining Stock

Billionaire Carl Icahn‘s Icahn Capital LP recently filed a 13D filing with the US Securities and Exchange Commission, which revealed a letter sent to the board of  Federal-Mogul Holdings Corp (NASDAQ:FDML). According to the letter, Icahn raised its offer to buy the remaining shares of Federal-Mogul Holdings  to $8.00 per share from the $7.00 bid announced in February, then the investor expressed its intention to acquire the company. Icahn Capital LP owns 138.6 million shares of Federal-Mogul Holdings Corp (NASDAQ:FDML), as disclosed in its latest 13F filing with the US Securities and Exchange Commission, for the end of March. The stake amasses over 80% of Federal-Mogul Holdings’ outstanding stock.

Federal-Mogul Holdings is a company that produces vehicle safety products, and powertrain components, and recently it has created a new website on which more detailed information on their products and brands can be found. Since the beginning of the year, the company’s stock has lost 30.71%. In its latest financial reported for the first quarter of the current year, Federal-Mogul Holdings disclosed earnings per share of $0.31 and revenue of $1.9 billion, beating the expectations by $0.04 and $10 million, respectively.

According to Insider Monkey’s database, at the end of March eight investors were long Federal-Mogul Holdings Corp (NASDAQ:FDML), down from nine funds a quarter earlier. Among them, the biggest position was disclosed by Icahn Capital LP, valued at $1.37 billion, followed by Murray Stahl’s Horizon Asset Management, which reported holding about $3.6 million worth of stock. Remaining investors that are bullish on this stock included David E. Shaw’s D E Shaw, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Jim Simons’ Renaissance Technologies.

On the other hand, investors who lost interest in this stock and sold off their positions are Ken Griffin’s Citadel Investment Group  and John A. Levin’s Levin Capital Strategies, which dropped off positions worth around  $0.9 million and $0.1 million, respectively.

You can access the original SEC filing by clicking here.

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