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Monica Wolfe
Monica Wolfe
Articles (757) 

Carl Icahn Increases Position in Navistar and Avoids Proxy Battle

July 22, 2013 | About:

Last week, the ever-busy Carl Icahn took a break from his pursuit to buy Dell from its CEO to increase his holdings in another company. Icahn made two increases to his position in Navistar International (NAV) last week.

On July 17, Icahn upped his position by 5.2%. The guru purchased 646,289 shares at an average price of $33.42 per share. After his first buy of the week, Icahn held 15.59% of the company’s shares outstanding.

Icahn made a second buy of Navistar shares on July 19 when he increased his position by an additional 6.55%. Icahn bought 818,279 shares at an average price of $34.02 per share. Icahn now owns a total of 13,309,735 shares of Navistar International, representing a significant 16.61% of the company’s shares outstanding.

Carl Icahn is Navistar International’s largest guru shareholder. Icahn’s holding history as of the close of the first quarter:

Navistar International is a holding company whose subsidiaries and affiliates produce International brand commercial and military trucks, MaxxForce brand diesel engines, and IC Bus brand school and commercial buses. An affiliate also provides truck and diesel engine service parts. Another affiliate offers financing services.

Navistar’s historical price, revenue and net income:


On July 15, Navistar announced several amendments that they had made towards settlement agreements and the stockholder rights plan. The company reported that Icahn Partners and MHR Fund Management would each nominate two directors to the Board at the 2014 Annual Meeting, the company amends and extends stockholder rights plan to allow just under 20% ownership, and Director Jack Pope retired from the Board of Directors in order to allow for an additional nominee.

The company’s amendments also noted that Icahn and MHR both agreed that they would not run a proxy contest at the 2014 Annual Meeting and would support the Board’s nominees, as well as certain other provisions.

"We view the updated agreements with Icahn Partners and MHR, as well as the amendment to the Rights Plan, as positive steps as we continue to execute our turnaround plan and drive the company to restored profitability," said Troy Clarke, Navistar president and CEO.

The GuruFocus analysis on Navistar reports that the company’s revenue has been in decline over the past year. It also notes that Navistar’s gross margin has been in long term decline with average rate of decline per year of -7.7%.

Navistar has a market cap of $2.78 billion. Its shares are currently trading at around $34.56 with a P/S ratio of 0.20.

There are seven gurus that hold a stake in Navistar International. Click here to see their holding histories.

Rating: 4.5/5 (2 votes)


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GuruFocus has detected 6 Warning Signs with Navistar International Corp $NAV.
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