Billionaire businessman and activist investor Carl Icahn wants to snatch up the last bits of Federal-Mogul Holdings Corporation he doesn’t already own, Automotive News reports.
The 80-year-old tycoon already owns an 82 percent share in the Southfield, Michigan-based global auto parts supplier, where he serves as chairman, but his recent offer of $7 a share could net him full ownership.
Proving what a savvy investor the guy really is, news of the offer made by Icahn Enterprises propelled Federal-Mogul’s stock into the upper stratosphere. The bid is under review by the corporation’s board, and will need to win majority approval in order to get the green light.
Should it be approved, there’s little doubt it will push Icahn’s net worth — estimated at more than $18 billion at the end of February — even closer to Mr. Burns levels.
The century-old Federal-Mogul owns a laundry list of aftermarket brands, among them Wagner brake parts and Champion spark plugs, and recently chose to terminate a spin-off of its Motorparts division. Pulling back from an earlier decision, the corporation’s two business divisions will remain independent, with their respective CEOs reporting to Federal-Mogul’s board.
Suffice it to say, Icahn has been having a good run lately. He ended 2015 by winning a bidding war for ownership of parts and repair chain Pep Boys with an offer valued at around $1 billion, and just three days ago bought Donald Trump’s bankrupt Taj Mahal casino in Atlantic City.
That last acquisition might be a riskier investment than the others, but hey, you’ve got to spend money to make money.