Federal-Mogul Holdings Corp. said Tuesday it has agreed to be acquired by Icahn Enterprises LP in a deal structured as a tender offer followed by a merger. Under the terms of the deal, Icahn Enterprises will pay $9.25 in cash for each Federal-Mogul share. That’s a premium of 86% over Federal-Mogul’s closing shares on Feb. 26, the business day before Icahn Enterprises, investing arm of Carl Icahn, made an original offer of $7.00 a share. Once the deal is complete, the goods supplier will become a privately held part of Icahn Enterprises. Federal-Mogul shares fell 0.2%, but are up 35% in the year so far, while the S&P 500 has gained about 6%.
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