Billionaire investor Carl Icahn said he will pursue information about “obvious failures” at Navistar International Corp., in his second letter this week criticizing the maker of trucks and engines.
“I would prefer to amicably resolve this matter with Navistar and not engage in the tiresome and expensive process of protracted litigation and a proxy fight,” Icahn wrote in a letter to the company’s shareholders today.
The investor said he was responding to the Lisle, Illinois-based company’s statement yesterday that it was disappointed that Icahn “has chosen to pursue his unproductive tactics of threats, attacks, and disruption rather than continuing constructive engagement.” Navistar was reacting to Icahn’s Sept. 9 letter to its board.
Icahn is pressuring Navistar’s new management, led by former Textron Inc. Chief Executive Officer Lewis Campbell, after the company had a net loss of $241 million for the first three quarters of its fiscal year and last month ousted Dan Ustian as its CEO. Icahn in the Sept. 9 letter said he wants four board seats made available to shareholders “immediately.”
Karen Denning, a Navistar spokeswoman, declined to comment on Icahn’s letter to shareholders. Icahn has a 14.94 percent stake in the company and is its third-largest stockholder, according to data compiled by Bloomberg.
Navistar rose 2.5 percent to $24.58 at the close in New York. The shares have tumbled 35 percent this year.