Federal-Mogul Will No Longer Proceed With Planned Spin-Off

Federal-Mogul Holdings Corp FDML on Friday announced it will no longer pursue a spin-off of its Motorparts division.

Federal-Mogul announced in 2014 it will spin-off its Motorparts division to give the company more flexibility. Carl Icahn, a major shareholder of the company, noted at the time that a spin-off would create a better environment for management to focus on its Powertrain segment.

Federal-Mogul also confirmed on Friday that its two divisions will continue operating as independent segments with two chief executives who will both report directly to the company's Board of Directors.

Shares of Federal-Mogul have lost more than 30 percent since the start of 2016 and are lower by more than 65 percent over the past year.