Navistar International Corp. (NAV:US), the truckmaker trying to end losses, rose as much as 6.3 percent after investor Carl Icahn announced a hostile tender offer for competitor Oshkosh Corp. (OSK:US)
Navistar rose 5.2 percent to $23.14 at 12:14 p.m. New York time after reaching $23.37, the highest intraday price since Sept. 24. Shares in the Lisle, Illinois-based company dropped 42 percent this year through yesterday.
Icahn said today he plans to start a tender offer of $32.50 for Oshkosh shares, a 21 percent premium over yesterday’s closing price (OSK:US). Icahn, who this week agreed with Navistar to add at least one director to that truckmaker’s board, said he intends to nominate a slate of Oshkosh directors.
Navistar’s four largest investors hold about 50 percent (NAV:US) of the shares, including a 14.9 percent (NAV:US) stake held by Icahn, 76. The billionaire investor publicly disclosed stakes in Navistar and Oshkosh last year, prompting speculation that he would push the two companies to merge or combine their defense businesses.
Icahn’s agreement this week with Navistar averted a proxy fight the investor had threatened. Icahn has pressured Navistar’s new management, led by former Textron Inc. (TXT:US) Chief Executive Officer Lewis Campbell, after the company had a net loss of $241 million for the first three quarters of its fiscal year.
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