Federal Mogul in spotlight

Federal Mogul Goetze is very much in the spotlight today morning. The stock opened over 5.5% higher at Rs.546.50 and went on to an intra day high at Rs.551.10. Its 52-week high is at Rs.612.

The stock is in news after it received the CCI approval for acquisition up to 25.02% stake in the company by Icahn Enterprises, American Entertainment and IEH FMGI Holdings.

Investor Carl Icahn-owned Federal-Mogul was acquired by Tenneco in a $5.4-billion deal in April 2018, which triggered off an open offer in the Indian subsidiary. But the offer got delayed after Tenneco approached the Securities Appellate Tribunal (SAT) again on the pricing recommended by SEBI at Rs.608.46 from Rs.400/share. SAT has put the ball back in the court of the company and further, there is no news on this offer.

This open offer never got off the ground and now the company has got the approval for Icahn Enterprises and others to acquire the balance 25.02% stake. Promoters currently hold 74.98% stake.