The Sunday Business (London), citing unnamed sources, said GKN Plc. (London, England) either has made or is in the process of making an unsolicited USD $400 million offer to acquire troubled Federal-Mogul Corporation (Southfield, Michigan).

If true, the $400 million bid would value Federal-Mogul, widely rumored near bankruptcy, at a healthy $6.00 per share.

GKN has been regularly making strategic acquisitions and remains profitable despite the softening economy hurting its customers. The company reportedly has access to $2.9 billion in cash and debt earmarked for acquisitions.

Two troublesome issues come into play, however.

The first is Federal-Mogul's continued exposure to prolonged and costly legal battles involving asbestos litigation.

The second is Federal-Mogul's large holding by corporate raider Carl Ichan. Ichan reportedly paid no less than $15 per share when accumulating his position.

Although it has been a holiday for Federal-Mogul, GKN is on normal business hours and has not issued any public response to the report.

GKN Plc (London, England) is a globally diversified industrial manufacturer with operations in over 40 countries serving customers in automotive, aerospace and industrial components.