Billionaire businessman Carl Icahn has plans for a new career as a used-car salesman, and he’s eager to sell his wares to Lyft and Uber, according to a scoop by the New York Post.
What Icahn -- whose auto investments include Auto Plus and Pep Boys -- intends to do is to replace the transmissions on older cars and then resell them to companies like Uber and Lyft, which Icahn is invested in. The cars he buys will also be exported to emerging markets, according to the Post.
News of Icahn’s foray into the used-car business comes in the same week as Icahn Enterprises (NASDAQ:IEP) is selling its automotive supply group Federal-Mogul LLC to manufacturer Tenneco (NYSE:TEN) in a deal worth US$5.4bln.
Tenneco intends to slice Federal-Mogul into two businesses which will both be spun off on a tax-free basis into separate public companies. The first spun-off group will zero in on “aftermarket & ride performance” and mainly sell products in the vehicle after-market while the second will focus on “powertrain technology” and Icahn will hold a board seat in this company.
Tenneco will pay US$800mln in cash and 29.5mln shares of its common stock, of which 23.8mln shares will be non-voting shares which convert to voting shares when they are sold.
The deal is expected to close in the second half of the year, subject to the approval of Tenneco’s shareholders. It comes after Icahn last year acquired all of Federal-Mogul and took the group private.