Tags: Icahn | Navistar | Stake | truck

Icahn Raises Navistar Stake to About 12%

Friday, 08 June 2012 08:22 AM

Carl Icahn increased his stake in Navistar International Corp. to 11.87 percent on Thursday, taking advantage of a sharp fall in the truck and engine maker's shares after the company reported a quarterly loss.

Icahn, who had pushed for a merger of Navistar and rival Oshkosh Corp., had earlier reported a stake of 9.99 percent in Navistar.

The billionaire investor bought 883,200 Navistar shares on Thursday, when the company's shares fell as much as 28 percent to $20.21.

Navistar's results have been hit over the last two quarters by warranty costs related to engines built in 2010 and 2011. It is also facing delays in receiving regulatory approval for a new engine that does not comply with current U.S. emission rules.

The company warned investors in March that costs for repairing the engines were taking a heavy toll on profit, but said warranty claims had peaked. Claims, however, have shot up since then.

Navistar Chief Executive Daniel Ustian had said he was open to a merger with Oshkosh, in which Icahn also holds an about 10 percent stake, but the idea was rejected by Oshkosh shareholders.


© 2020 Thomson/Reuters. All rights reserved.


   
1Like our page
2Share
186
2012-22-08
Friday, 08 June 2012 08:22 AM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved