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Federal-Mogul Holdings Corporation Investigated By Block & Leviton Regarding Icahn Enterprises Tender Offer

BOSTON, Sept. 30, 2016 /PRNewswire/ -- Block & Leviton LLP (www.blockesq.com) announces its investigation into Federal-Mogul Holdings Corporation (NASDAQ: FDML) and its board of directors for breaches of fiduciary duty in connection with Icahn Enterprises, L.P.'s tender offer to acquire all outstanding shares of the company.

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. Icahn Enterprises is controlled by billionaire investor Carl Icahn.

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.

Block & Leviton's investigation focuses on whether the tender offer represents fair value for the company, whether the sales process was entirely fair to shareholders, and whether the board of directors, more than half of which works or worked at various Icahn branded entities, was unduly influenced in negotiations to sell the company.

If you are a Federal-Mogul shareholder and have questions about your legal rights or possess information relevant to this investigation, you are encouraged to contact Steven P. Harte, Esq. and/or Bradley J. Vettraino, Esq. at (617) 398-5600, by email at steven@blockesq.com or bradley@blockesq.com, respectively, or visit www.blockesq.com/federalmogul.

Confidentiality to whistleblowers or others with relevant information is assured.

Block & Leviton LLP is a Boston-based law firm representing investors nationwide. The firm's lawyers have collectively been prosecuting securities cases on behalf of individual and institutional investors for over 50 years, and have recovered billions of dollars on their behalf. Block & Leviton's investigations into corporate wrongdoing were recently covered by the New York Times.

This notice may constitute attorney advertising.

CONTACT:

Block & Leviton LLP
Bradley J. Vettraino
155 Federal Street, Suite 400
Boston, MA 02110
(617) 398-5600
bradley@blockesq.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/federal-mogul-holdings-corporation-investigated-by-block--leviton-regarding-icahn-enterprises-tender-offer-300337386.html

SOURCE Block & Leviton LLP

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