Goldman Sachs Comments On Federal-Mogul Price Target Increase

In a report published by Goldman Sachs, Federal-Mogul Corp. FDML price target is increased on M&Aprobability. Goldman Sachs said that on Friday, Federal-Mogul announced that it is evaluating strategic alternatives to enhance shareholder value. “No further details were provided but press reports have suggested that several financial sponsors have been asked to submit bids. Our 6 month price target rises to $26 from $24 to reflect the increased likelihood of a transaction. Our new target is the sum product of an M&A scenario which we weight at 30% where FDML shares are worth $30 and a base case where shares are worth $24 weighted at 70%.” Federal-Mogul Corp. closed yesterday at $25.26.