Icahn Enterprises To Buy Remaining Stake In Federal-Mogul For $9.25/shr

(RTTNews) - Federal-Mogul Holdings Corp. (FDML) and Icahn Enterprises L.P. (IEP) announced that Federal-Mogul had entered into an Agreement and Plan of Merger with a subsidiary of Icahn Enterprises, Federal-Mogul's majority shareholder, pursuant to which Icahn Enterprises will offer to purchase all of the outstanding shares of Federal-Mogul common stock not owned by Icahn Enterprises or its affiliates, in an all-cash transaction for $9.25 per share.

The all-cash offer represents a premium of 86 percent above Federal-Mogul's closing share price of $4.98 on February 26, 2016, the business day prior to Icahn Enterprises' original proposal of $7.00 per share.

Federal-Mogul's Board of Directors has unanimously recommended that Federal-Mogul stockholders accept the offer and tender their shares.

Upon consummation of the transaction, Federal-Mogul will be an indirect wholly-owned subsidiary of Icahn Enterprises. If the transaction is completed, Federal-Mogul will become a privately held company and its common shares will no longer be listed on the NASDAQ or any public market. Consummation of the transaction is subject to a "majority of the minority" minimum condition and other customary conditions.