Navistar Dodges Proxy Fight with Icahn
In early September, activist investor Carl Icahn demanded four seats on the board of Navistar International Corp. (NYSE: NAV), calling the appoint of Lewis Campbell as chairman and interim CEO “worse than ill-advised.” The truck, bus and recreational vehicle maker…
Two Navistar board members resigned to make way for the new appointees and when the third is named, another current board member will go. The three new directors will stand for reelection at Navistar’s annual shareholders meeting next year.
The troubled heavy truck maker has had difficulty building a new engine that complies with current EPA standards, and the share price has by more than 50% from a February high. Exactly how new board members will fix that remains to be seen.
Icahn owns about 15% of Navistar.
Navistar’s shares are up about 6% this morning, at $22.47 in a 52-week range of $19.79 to $48.18.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
