Home / Business and Economy / Apollo's Failed Takeover Bid Shakes India's Federal-Mogul Goetze
Apollo's Failed Takeover Bid Shakes India's Federal-Mogul Goetze
13 Nov
Summary
- Apollo Global Management's open offer for Federal-Mogul Goetze (India) Ltd failed in 2022
- The offer price of INR275 per share was well below the market price of INR320
- The market showed no interest in Apollo's takeover attempt
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.
True to the analyst's forecast, Apollo's takeover attempt for Federal-Mogul Goetze ultimately failed, as the open offer did not receive the desired acceptance from the Indian company's investors. This unexpected development in India's markets proved to be an intriguing subplot to Apollo's broader acquisition of Tenneco.
