Already a Bloomberg.com user?
Sign in with the same account.
(Updates share price in the second paragraph.)
Oct. 14 (Bloomberg) -- Navistar International Corp., the maker of International brand trucks, rose the most since May 2010 after billionaire Carl Icahn disclosed a 9.8 percent stake.
Navistar gained 7.3 percent to $41.51 at the close in New York, the most since May 10, 2010. The shares have dropped 28 percent this year.
Icahn’s purchase of 7.11 million Navistar shares or options to buy shares makes him the second-biggest holder of the Warrenville, Illinois-based truckmaker. Icahn, who buys positions in companies he considers to be under-performing and then pushes for change, has held talks with the management about adding people to its board, according to a filing late yesterday.
Navistar last month reported profit in the third quarter of $61 million, or 79 cents a share, excluding a tax allowance, as lower-priced fleet sales accounted for a larger share of the business. Profit was down from $107 million, or $1.44 a share, a year earlier, excluding some items.
Icahn didn’t return a telephone message seeking comment today.
Navistar “is always open to dialogue with its investors that can enhance shareholder value,” Karen Denning, a spokeswoman, said in an e-mail.
Icahn’s stake is second only to Wellington Management Co., which owned 7.29 million shares as of Aug. 31, according to data compiled by Bloomberg.
Icahn made millions in the 1980s pressuring companies from USX Corp. to Texaco Inc. to split up or increase dividends and stock buybacks.
--Editors: Bill Koenig, Jamie Butters
To contact the reporter on this story: Mark Clothier in Southfield, Michigan at firstname.lastname@example.org
To contact the editor responsible for this story: Jamie Butters at email@example.com