Billionaire Carl Icahn sold Federal-Mogul to Tenneco Inc. for $5.4 billion.

Federal-Mogul, a century old supplier of automotive component with a storied past, is being sold to Tenneco Inc. as part of a deal valued at $5.4 billion.

In recent years, Federal-Mogul – owned by Wall Street financier Carl Icahn – has gone through multiple re-organizations but has maintained its core businesses of powertrain products aftermarket parts even as it struggled to pay its debts.

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Icahn Enterprises will get $800 million in cash and 29.5 million shares of Tenneco stock. Tenneco will assume Federal-Mogul’s debt. The Lake Forest, Illinois-based auto parts maker said Tuesday that it will split the company into two parts, both to be traded publicly. (more…)