Apollo's Failed Takeover Bid Shakes India's Federal-Mogul Goetze

In 2022, when global investment firm Apollo Global Management took the American auto parts manufacturer Tenneco private, it triggered an interesting chain of events in India. As part of the Tenneco acquisition, Apollo's investment arm had launched an open offer to acquire shares of Federal-Mogul Goetze (India) Ltd, a subsidiary of Tenneco, at a price of INR275 per share.

However, the market response to Apollo's open offer was lukewarm at best. With Federal-Mogul Goetze's stock already trading near INR320 in the Indian markets, investors saw little incentive to tender their shares at the lower offer price. As HDFC Securities analyst Atul Karwa had predicted in September 2022, the open offer "may not solicit any major response" from shareholders.