Icahn wants holders to have say on Navistar board
NEW YORK (AP) — Billionaire investor Carl Icahn is asking Navistar International to let shareholders appoint at least four board members so that stockholders can have more of a say in the decision-making process for the struggling heavy truck and engine company.
Icahn, who owns about 15 percent of Navistar International Corp.'s outstanding shares, said in a letter on Sunday that he continues to be concerned about Navistar's future and will proceed with a lawsuit and proxy fight if necessary.
He said the company's board should have consulted its four large shareholders, including him, on recent management changes. Navistar's CEO Daniel Ustian stepped down about two weeks ago. The Lisle, Ill., company named Lewis Campbell, the former chairman, president and CEO of Textron Inc., as its executive chairman and interim CEO.
A Navistar representative was not immediately available for comment.
Navistar had struggled this year amid uncertainty about whether its Class 8 engine, used in the largest commercial trucks, would get Environmental Protection Agency approval. The company said in July that it was in talks with the EPA on a plan that would allow it to continue shipping trucks while it makes a transition to a new emission-reducing technology that will bring it into compliance with EPA requirements. The new technology is expected to be available beginning early next year. Navistar said then that the new plan would add to product development costs.
The company is working to cut other costs, is trimming its workforce and is considering putting some of its businesses up for sale.
Shares of Navistar were unchanged in premarket trading Monday. They closed at $24.76 on Friday, having lost about a third of their value this year.