SOUTHFIELD, Mich.—Billionaire investor Carl Icahn is buying the remaining shares of Southfield-based auto supplier Federal-Mogul Corp. in a deal valued at approximately $281 million.
Icahn, through a subsidiary of his firm Icahn Enterprises L.P., entered into a definitive agreement Tuesday with Federal-Mogul to acquire the remaining 18 percent of stock. Icahn offered to pay $9.25 per share in an all-cash deal—which represents 86 percent higher than the supplier's share price of $4.98 on Feb. 26, when Icahn first proposed the buyout for $7 per share.
Both companies' board of directors have approved the deal unanimously, Federal-Mogul said in a news release. Federal-Mogul shareholders will vote to approve the transaction at an undetermined future date.
Upon approval, Federal-Mogul will become a privately-held subsidiary of Icahn Enterprises and no longer traded on the NASDAQ.