SOUTHFIELD, Mich. (March 8, 2011)—Billionaire New York investor Carl Icahn may sell his controlling stake in Southfield-based Federal-Mogul Corp., Reuters has reported.
Icahn, who owns 76 percent of the powertrain and safety technology supplier, is in the preliminary stages of finding potential buyers, according to the Reuters article, which cited four unidentified sources.
Federal-Mogul declined to comment on the deal, calling it “speculation and rumor.”
Icahn purchased unsecured Federal-Mogul bonds before its bankruptcy in December 2007 and eventually swapped them for equity as part of the company's reorganization plan.
Icahn has a long history of buying and selling troubled assets. In 1998 he acquired the Stratosphere casino in Las Vegas for about $300 million in a foreclosure sale, along with other properties. He sold the assets nine years later for about $1.3 billion.