Navistar Advances After Investor Rachesky Increases Stake
Navistar International Corp. (NAV), which is trying to develop a heavy-truck engine that meets 2010 U.S. emission standards, rose as much as 6.1 percent after an activist investor boosted his stake.
Navistar gained 5.2 percent to $23.10 at 10:45 a.m. in New York, after reaching $23.28, the biggest intraday jump since July 3. The shares have dropped 42 percent this year through yesterday after plunging 35 percent last year. The shares slid 7.3 percent yesterday after truck-engine maker Cummins Inc. (CMI) reduced its revenue forecast as demand and the economy slow.
Hedge-fund manager Mark Rachesky said in a filing that he boosted his stake to 14.95 percent from 13.6 percent. He said in a June 25 disclosure statement that he planned to talk to management about the “business, operations, strategy and future plans.” Billionaire investor Carl Icahn boosted his stake in Navistar last month to 11.9 percent.
Navistar, based in Lisle, Illinois, is struggling to meet 2010 federal emission standards for its 13-liter heavy-truck engine. The company said July 6 it plans to augment its exhaust gas recirculation method of meeting emission standards and would have a 13-liter engine available by early next year.
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