Federal-Mogul Holdings Corp. said Monday it has gotten a merger proposal from majority shareholder Icahn Enterprises L.P. valuing the auto-parts maker at $1.18 billion.

Icahn, which already owns 82% of the Southfield, Mich., company, offered to purchase the remaining stock for $7 a share, a 41% premium to Friday's closing price.

In a Feb. 28 letter to the board, Icahn said the deal would be contingent on approval from a special committee of independent directors as well as approval by an informed vote of a majority of shareholders who aren't affiliated with Icahn.

The move to take ownership of Federal-Mogul would be Mr. Icahn's latest in the automotive space—in December, he won a takeover battle to buy Pep Boys for about $1 billion, outbidding Japanese tire maker Bridgestone Corp.

In June, Icahn Enterprises spent about $340 million to buy Auto Plus, the U.S. arm of Canadian parts distributor Uni-Select Inc.

Shares in the company, which have fallen 39% over the past three months and 62% over the past year, were halted premarket at $4.98.

Last month, Federal-Mogul Holdings Corp. said it terminated a previously announced spinoff of its motor-parts division.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

February 29, 2016 08:25 ET (13:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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