Oct. 11 (Bloomberg) -- Navistar International Corp., the truckmaker trying to end losses, rose after investor Carl Icahn announced a hostile tender offer for competitor Oshkosh Corp.
Navistar gained 2.8 percent to $22.61 at the close in New York time, after advancing as much as 6.7 percent. The Lisle, Illinois-based company’ shares have fallen 40 percent this year.
Icahn said today he plans a tender offer of $32.50 for Oshkosh shares, a 21 percent premium to yesterday’s close. Icahn, who this week agreed with Navistar to add at least one director to that company’s board, said he intends to nominate an Oshkosh director slate. In a Bloomberg Television interview later, he said that he doesn’t want to combine Navistar and Oshkosh and that Oshkosh would be worth more in pieces.
Navistar’s four largest investors hold about 50 percent of the shares, including a 14.9 percent 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. 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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