Carl Icahn Acquires 9.8 percent Stake in Navistar International

October 14 00:00 2011

New York, October 14 ( – A 9.8 percent stake in Navistar International Corp (NYSE: NAV) has reportedly been acquired by billionaire investor Carl Icahn. Icahn commented that the shares of the truck and engine maker have been undervalued. In a filing with the US Securities and Exchange Commission (SEC), he said that he has had discussions with Navistar’s management to discuss various aspects of the business and future strategies.

Icahn has also made a proposal for appointing his nominees to Navistar’s board of directors in his discussions but no agreement has yet been made. Although Icahn usually gets his way, there have been some recent setbacks. In September, a month after he failed to get his representatives voted on to the board of drug maker Forest Laboratories Inc, he had to abandon his bid to take over the board of bleach maker Clorox Co. He had also given up his bid to control Lions Gate Entertainment Corp in August.

In after-market trading on Thursday, Navistar shares rose more than 5 percent to $40.75. Earlier on the day, it closed up 0.3 percent at $38.68 on the New York Stock Exchange, bringing the value of the company to about $2.8 billion. Icahn’s holdings in Navistar are similar to his stake in Oshkosh Corp, another truck maker.