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Image source: CarlIcahn.com.

What: Shares of Federal-Mogul Holdings Corp. (NASDAQ:FDML) were up a whopping 45% at 11:45 a.m. ET on Monday after activist investor Carl Icahn, through his company Icahn Enterprises L.P. (NASDAQ:IEP), made a bid for the auto parts supplier.

So what: Icahn, which already owns 82% of Federal-Mogul, offered to acquire the rest of the company for $7 per share, representing a 41% premium to its closing price on Friday. The action is just Icahn's latest in a string of moves in the auto space -- he purchased U.S. parts distributor Auto Plus in June and won a takeover battle for Pep Boys in December -- and judging by Icahn Enterprises' own 7% pop today, Mr. Market is particularly pleased with the approach.

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Now what: The deal is contingent upon approval by a special committee of independent directors and also by an informed vote of majority shareholders who are not affiliated with Icahn Enterprises. "We will not move forward with the transaction unless both of these non-waivable conditions are satisfied," wrote Icahn in a letter to Federal-Mogul's board of directors. "We look forward to hearing from you." So while Federal-Mogul shares are likely all popped out at this point, Icahn Enterprises' increasing foothold in the auto-supplier space might be worth looking into. 

Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.