Activist investor, Carl Icahn is not having a great day. Carl Icahn is in the middle of fighting several proxy wars with the management of various companies. Yesterday, he wrote a letter to the Board of Navistar International.
Carl Icahn currently holds a 14.9% stake in the the troubled vehicle maker. the former CEO of Navistar International Corp (NYSE:NAV), Dan Ustian recently announced his retirement. However, Icahn is not happy and wants to put four of his members on the board. Icahn called Navistar International Corp (NYSE:NAV), “a poster child for abysmal business decisions and poor corporate governance.”
The board responded today with the following statement:
“The Navistar Board takes its fiduciary duties very seriously and is committed to acting in the best interest of the Company and all of its shareholders. Navistarhas recently taken a number of important actions, including appointing new leadership, defining and beginning to implement a new clean engine solution, accelerating cost reduction actions, and undertaking a review of its non-core businesses, all with the goal of driving long-term profitability and delivering shareholder value.
“Navistar maintains an ongoing dialogue with its shareholders, and appreciates their input and views. As such, after a year of dialogue, we are extremely disappointed that Mr. Icahn has chosen to pursue his unproductive tactics of threats, attacks, and disruption rather than continuing constructive engagement, particularly at this important time for Navistar. Rest assured, the Board and management have a clear path forward and are focused on executing on their plan and delivering value to shareholders.”
For the nine months ended 31 July 2012, Navistar International Corp revenues increased less than 1% to $9.67B. Net loss totaled $241M vs. income of $1.47B. Revenues reflect Truck segment increase of 5% to $6.83B, also reflect Engine segment decrease of 15% to $1.3B, Parts segment decrease of 2% to $1.41B. Net loss reflects Other expense (income), net increase from $39M (income) to $26M (expense).
Shares of Navistar International Corp (NYSE:NAV) were down 3.1% today to $23.99
Disclosure: The author of this article has no position in any companies mentioned.