Federal-Mogul names new co-CEO, unveils stock rights offer
Federal-Mogul Corp., the auto supplier controlled by longtime Wall Street deal maker Carl Icahn, has named a new co-CEO who also will head the company's aftermarket product operations.
Kevin Freeland, 56, formerly COO at retailer Advance Auto Parts Inc., will become co-CEO of the company and CEO of its Vehicle Components Segment starting June 17, Federal-Mogul said in a statement today.
Freeland will replace Michael Broderick, who became co-CEO and CEO of the aftermarket unit in 2012, when the company announced it had begun operating with two separate business units. Company spokesman Steven Gaut confirmed that Broderick no longer holds those positions.
"Michael Broderick is assisting with a brief transition period. He is no longer in the role of co-CEO and CEO F-M VCS," Gaut wrote in an e-mail today to Automotive News.
Gaut would not indicate if Broderick resigned or was terminated as co-CEO, and no other details about his departure were available.
Freeland was not made available today for interviews. He will share corporate CEO duties with Rainer Jueckstock.
"The board is pleased to welcome Kevin to Federal-Mogul, and we look forward to his leadership in growing the aftermarket division and building upon its world-class products and strong customer base," Icahn, chairman of the company's board, said in the statement. Icahn owns about 77.5 percent of Federal-Mogul.
Federal-Mogul produces several popular aftermarket brands, including Champion spark plugs and ANCO wiper blades.
$500 million stock rights offering
The company also announced that it would launch a $500 million stock rights offering to refinance debt.
The company will offer to each shareholder one transferable subscription right for every whole share of common stock they own on June 7 at 5 p.m. For each right, shareholders will be able to purchase the share at a price of $9.78 per share. The shares closed today at $10.15, down 2 percent.
The company also will offer an over-subscription package to allow shareholders to purchase additional shares beyond those rights if they wish, subject to the availability and allocation of shares among other shareholders who wish to buy additional stock.
The offering will conclude at 5 p.m. eastern time on June 27 unless extended.
Federal-Mogul Corp. ranks No. 46 on the Automotive News list of the top 100 global suppliers with worldwide original-equipment automotive parts sales of $4.6 billion in 2011.
Note: An earlier version of this story misstated the time zone description for the stock offering expiration.
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