Federal-Mogul Corp. has appointed Kevin Freeland as its co-chief executive. The supplier also named Freeland as chief executive of its aftermarket product operations, Vehicle Components Segment. Freeland’s appointment takes effect June 17, 2013, replacing Michael Broderick. Federal-Mogul spokesman Steven Gaut confirmed in an e-mail to Automotive News that Broderick is no longer the co-CEO of the company and CEO of its aftermarket product operations.
Gaut would not tell whether Broderick resigned or was terminated as co-CEO. Freeland, on the other, will share corporate CEO duties with Rainer Jueckstock. Carl Icahn, chairman of Federal-Mogul’s board, welcomed Freeland to the company, adding that the board is looking forward to his leadership in growing the aftermarket division and “building upon its world-class products and strong customer base." Icahn holds a 77.5-percent percent in Federal-Mogul.
Federal-Mogul produces and distributes more than 20 brands in the automotive aftermarket, including Champion spark plugs, MOOG chassis parts and ANCO wiper blades. Aside from the appointment, Federal-Mogul also disclosed that it would launch a $500-million stock rights offering, which proceeds will be used to refinance debt.
The auto supplier will offer to each shareholder one transferable subscription right for every whole share of common stock they own on June 7, 2013, at 5 p.m. For each right, shareholders could purchase the share at a price of $9.78 per share. Federal Mogul will also offer over-subscription package to enable shareholders to acquire additional shares beyond those rights, subject to the availability and allocation of shares among other shareholders who want to buy additional stock.