Activist investor Carl Icahn dropped his fight to control Oshkosh Corporation (NYSE:OSK) after failing to increase his stake in the truck and emergency-vehicle manufacturer to 25 percent on Monday.

Carl Icahn

It is not clear whether Icahn also dropped his plan to replace the 13 directors of the company.

Last month, Icahn said he will push his proxy fight to shake-up and shed some of the assets of Oshkosh Corporation (NYSE:OSK) if he acquires a 25 percent stake in the company.

Icahn failed and collected only a 22 percent stake in Oshkosh Corporation (NYSE:OSK). In his filing with the SEC, Icahn stated, “We have said in a number of communications to shareholders since the outset of this tender offer that we would not extend our offer, unless at least 25% of the outstanding shares are tendered in the offer. Therefore, we are returning all tendered shares and we will not extend the offer.”

Icahn owns a 9.5 percent stake in the company. He submitted his proposal to acquire any or all of the outstanding shares of the truck and emergency-vehicle manufacturer last month for $32.50 per share.

The board of directors of Oshkosh Corporation (NYSE:OSK) unanimously rejected his proposal to take over the company, citing that it is inadequate. In fact, Richard M. Donnelly previously stated that Icahn’s “unsolicited, inadequate, highly-conditional, opportunistic offer undervalues Oshkosh and is not in the best interest of all Oshkosh shareholders.”

In his proposal, Icahn wants Oshkosh to merge Navistar International Corp (NYSE:NAV), or to divest JLG, a construction equipment manufacturer. The board of directors of Oshkosh Corporation described Icahn’s proposal as “ill transactions.”

Furthermore, Donnelly previously emphasized that Icahn failed to provide an alternative proposal to increase the value to shareholders. According to him, the board of directors would have been open to exploring any alternative proposal from Icahn.

Donnelly previously said that the Board and the management team of the company are confident that the MOVE strategy of Oshkosh Corporation would deliver a substantial value for its shareholders. He pointed out that the strategy delivered proven results in fiscal 2012. The company plans to continue its strategy and increase the value of its shareholders through cost reduction, prudent capital allocation, and global growth.

Shares of Oskosh Corporation (NYSE:OSK) are down by nearly 4 percent to $28.93 per share during the afternoon trading on Tuesday.