Financier Drives 26% Rise in Federal-Mogul

Federal-Mogul Corp. shares rose 26% after financier Carl Icahn disclosed that he acquired a 5.2% stake in the world’s largest maker of engine seals and bearings. The Southfield, Mich.-based company didn’t return calls seeking comment. Federal-Mogul has struggled after an acquisition binge in 1998. Earlier this month, Federal-Mogul said it will cut 1,500 jobs, or almost 3% of its 50,400 workers, as it reduces costs amid weakening demand for replacement parts such as spark plugs, gaskets and pistons. Icahn and High River, an investment partnership he controls, and Riverdale, an Icahn-owned investment company, bought 3.67 million shares of Federal-Mogul from Feb. 4 through March 16 for about $63.7 million, including commissions, according to a Securities and Exchange Commission filing late Tuesday. The investors paid $13.62 to $17.07 a share. The Icahn filing said that the shares were for “investment purposes” and that the group may seek to talk to management about ways “of increasing shareholder value.” Federal-Mogul rose $3.19 to close at $15.44 on the NYSE.