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
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SOURCE Block & Leviton LLP