‘Activist Investor’ Icahn has Stake in Navistar

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October 14, 2011 by   1 Comment

Carl C. Icahn has already had a busy year, having taken aim at companies like Clorox and Forest Labs. That hasn’t stopped him from adding yet another target to his portfolio.

According to a report in the New York Times, the activist investor disclosed on Thursday (Oct. 13) that he had built up a 9.8% stake in Navistar International, a maker of trucks, buses and Monaco brand RVs. In a securities filing disclosing his holdings, Icahn wrote that he had already held discussions with management, including about potentially adding members to the company’s board.

Icahn did not say anything more about his intentions. In the past, his playbook has ranged from pushing a company to explore a potential sale to actually making his own takeover bid, though with the hope that someone else will come in with a higher price.

His record for 2011 has been a bit mixed. While Mr. Icahn scored big with the sales of Motorola Mobility and Genzyme, his attempts to wrest control of the boards at Clorox and Forest Labs fell short.

Navistar has had a bumpy year, with its net income swinging from a loss for the first three months of 2011 to moderate profits. Last month, the company lowered the bottom end of its current fiscal year earnings guidance.

As of Thursday’s closing price of $38.68, Navistar had a market value of about $2.8 billion. Shares in the truck maker have tumbled more than 21% over the last 12 months. Based in Warrenville, Ill., Navistar has 18,700 employees and is parent to Monaco RV LLC and Workhorse Custom Chassis LLC.



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One Response to “‘Activist Investor’ Icahn has Stake in Navistar”

  1. Tom Gauger on October 15th, 2011 11:07 am

    This is one of the worst things that could happen to Navistar. Icahn is a ruthless investor, caring nothing about the companies he buys; only about increasing his personal wealth.
    Monaco LLC builds a fine RV despite a bad economy. (In the interest of fairness, I will say that I own a ten-year-old Monaco.)
    I urge the Navistar board to resist Icahn’s advances and to read what he did to other companies.
    Save thousands of jobs which surely would be lost if Icahn gains a controlling interest in Navistar.