Icahn Is Buying Federal-Mogul Holdings Corp (NASDAQ:FDML) Shares


There are worse backers to have than the Icahn estate, and an announcement detailing that said estate has just taken a position in your future can be a strong upside catalyst for any company. Federal just found this out.

In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Federal-Mogul Holdings Corp (NASDAQ:FDML) reported that Icahn Capital LP has picked up 138,590,141 of common stock as of 2017-01-18.

The acquisition brings the aggregate amount owned by Icahn Capital LP to a total of 138,590,141 representing a 82.0% stake in the company.

For those not familiar with the company, Federal-Mogul Holdings Corporation is a supplier of technology in vehicle and industrial products for fuel economy, emissions reduction and safety systems. The Company operates in two segments: Powertrain segment and Motorparts segment. The Powertrain segment focuses on original equipment products for automotive, heavy duty and industrial applications. The Motorparts segment sells and distributes a portfolio of products in the global aftermarket. The Company supplies a range of components, accessories and systems. The Company serves the original equipment manufacturers (OEM) and original equipment servicers (OES) (collectively OE) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment.

A glance at Federal-Mogul Holdings Corp (NASDAQ:FDML)’s key stats reveals a current market capitalization of 1.66 billion based on 169.04 million shares outstanding and a price at last close of $9.87 per share.

Looking at insider activity, there are a few transactions worth noting.

Specifically, on 2013-04-26, Jueckstock picked up 40 at a purchase price of $6.79. This brings their total holding to 40 as of the date of the filing.

On the sell side, the most recent transaction saw Goachet unload 13,800 shares at a sale price of $14.45. This brings their total holding to 0.

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Federal-Mogul Holdings Corp (NASDAQ:FDML) as things move forward to see if its progress aligns with these transactions.

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