Pendulum
Long/short equity, value, special situations, growth

Federal-Mogul: Carl Icahn At The Wheel And 40% Upside Potential As Europe Rebounds

Carl Icahn is at the wheel of an overlooked auto supplier with lots of European exposure, Federal-Mogul (NASDAQ:FDML). Icahn serves as chairman and holds an 80% ownership stake valued at $2.4 billion. Furthermore, he recently invested $434 million of new money into the company and gave a $1.6 billion backstop commitment for its debt refinancing. But, there is more to the Federal-Mogul story than Icahn. The company has been slow to rebound from the financial crisis because of its heavy European exposure, but the European auto market is showing signs of coming back to life. Even if the European recovery is slow and gradual, it would be a big boost for the company. Federal-Mogul has also undertaken a...

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