Icahn Enterprises currently holds approximately 82% of Federal-Mogul's stock. It acquired its shares in 2007, when it converted Federal-Mogul bonds, purchased at extremely favorable rates when Federal-Mogul was undergoing bankruptcy in 2001, into 25.1 million shares.
On September 6, 2016, Federal-Mogul announced that its board of directors agreed to a tender offer price of just $9.25, a one cent premium over the prior day's closing price, for Icahn Enterprises to purchase the outstanding shares of the company. Minority shareholders immediately and resoundingly reacted negatively to the news. For example, Mario Gabelli, who owns 36% of the non-Icahn shares of Federal-Mogul, has decried the deal as unfair, opining that Federal-Mogul is worth as much as $13 per share, and that the tender offer significantly undervalues the company.
Our investigation concerns possible breaches of fiduciary duty and other violations of state law by the Board of Directors of Federal-Mogul or not acting in the Company's shareholders' best interests in connection with the sale process.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide. To learn more about the class action process, please visit: www.rmclasslaw.com.
CONTACT: Ryan & Maniskas, LLP
Richard A. Maniskas, Esquire
995 Old Eagle School Rd., Suite 311
Wayne, PA 19087
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SOURCE Ryan & Maniskas, LLP