Navistar Rises After Icahn Employee Joins Company’s Board
The shares gained 4 percent to $22.37 in New York, the highest closing price since Oct. 11. Navistar has slid 41 percent this year.
Samuel Merksamer, managing director at Icahn Capital LP, was named to the board, replacing Diane Gulyas, who retired after serving three years as a director, according to a statement. Merksamer is the third appointment that’s part of an October agreement between Lisle, Illinois-based Navistar and investors Icahn and Mark Rachesky to avert a proxy fight.
Navistar generated a $241 million net loss in the first nine months of its fiscal year. The truckmaker ousted Dan Ustian as chief executive officer in August after an inquiry from regulators about its accounting and disclosures, and the company reversed course on an engine strategy that had failed to meet 2010 federal emission standards. Navistar said Oct. 30 it plans to close a Texas plant.
Merksamer’s appointment, and Gulyas’s departure, were effective Dec. 10, according to today’s statement. The other board appointments under the October agreement were Rachesky and Vincent Intrieri, an Icahn representative.
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