Bloomberg News

Navistar Adopts Rights Plan to Avoid Possible Takeover

June 20, 2012

Billionaire Carl Icahn

Billionaire Carl Icahn owns 11.9 percent of Navistar International Corp. Photographer: Scott Eells/Bloomberg

Navistar International Corp. (NAV:US), the maker of heavy-duty trucks, said its board adopted a stockholder rights plan to prevent “coercive takeover tactics.”

Hedge fund manager Mark Rachesky last week disclosed he controls a 13.6 percent stake in Navistar. His former mentor, billionaire investor Carl Icahn, owns 11.9 percent (NAV:US).

One preferred stock purchase right will be distributed as a dividend on each share held as of June 29, Navistar said in a statement. The rights are exercisable if a shareholder acquires 15 percent or more of common stock or starts a tender offer that would lead to a stake larger than 15 percent, the company said.

Navistar, based in Lisle, Illinois, this month lowered its annual profit forecast to a range of break-even to $2 a share as it copes with the repercussions of pursuing a emission-reduction technology that has prevented it from winning U.S. Environmental Protection Agency certification for its 13-liter engine.

To contact the reporter on this story: Mark Clothier in Southfield, Michigan at

To contact the editor responsible for this story: Jamie Butters at

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