- RV Business - http://www.rvbusiness.com -
Report: Icahn Grabs Stake in Navistar Offering
Posted By RVBusiness On October 26, 2012 @ 10:36 am In Breaking News | No Comments
Billionaire investor Carl Icahn bought nearly 15% of the 10.7 million shares issued Thursday (Oct. 25) by Navistar International Inc. to ease concerns about the commercial truck and engine maker running out of money.
Fox Business reported that five of Icahn’s investment funds bought 1.6 million shares, paying $18.75 a share, or a total of $29.9 million, according to a filing late Thursday with the U.S. Securities and Exchange Commission (SEC).
The additional shares raised Icahn’s Navistar holdings by 15.5%. That’s the same percentage Navistar’s total share count increased by with the additional 10.7 million shares. As a result, Icahn’s stake in Navistar stays unchanged at about 14.9%, just under the 15% threshold to trigger Navistar’s antitakeover plan.
The company’s board enacted a so-called poison-pill plan in June when activist investors such as Icahn and his former protege Mark Rachesky began buying large blocks Navistar’s depressed stock. Both Icahn and Rachesky had 14.9% shakes in Navistar before the company’s stock offering Thursday.
Earlier this month, Navistar’s directors agreed to add Rachesky and a representative for Icahn to the company’s board. Icahn and Rachesky also were given the authority to select another director who both men agree on. In exchange for representation on Navistar’s board, Icahn and Rachesky agreed to refrain from nominating an alternative slate of directors at the company’s 2013 annual meeting. The deal defused a potential showdown over control of the company between the incumbent board and activist investors.
Article printed from RV Business: http://www.rvbusiness.com
URL to article: http://www.rvbusiness.com/2012/10/report-icahn-grabs-stake-in-navistar-offering/
Copyright © 2009 RV Business. All rights reserved.