NEW YORK (TheStreet) --Shares of Federal-Mogul Holdings (FDML) resumed trading midday Tuesday after being halted on reports that majority shareholder Icahn Enterprises (IEP)had purchased the rest of the company.
CNBC's Kate Rogers appeared on this afternoon's "Fast Money Halftime Report" to report on the purchase.
"The all-cash offer is just one cent above the current trading price before the halt of $9.24, but represents a premium of 86% above Federal-Mogul's closing share price of $4.98 in early February," Rogers explained.
The offer of $9.25 per share is $2.25 higher than Icahn's original proposed $7 per share, Kelly noted.
Federal-Mogul is a supplier of automotive technologies, headquartered in Southfield, Mi.
Shares of Federal Mogul were lower during mid-afternoon trading on Tuesday, while shares of Icahn Enterprises were trading higher.
Separately, TheStreet Ratings rates Federal-Mogul as a "Hold" with a ratings score of "C-." The primary factors that have impacted TheStreet Ratings rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including generally higher debt management risk and poor profit margins.
TheStreet Ratings objectively rated this stock according to its risk-adjusted total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
You can view the full analysis from the report here: FDML