Navistar Dodges Proxy Fight with Icahn
In early September, activist investor Carl Icahn demanded four seats on the board of Navistar International Corp. (NYSE: NAV), calling the appoint of Lewis Campbell as chairman and interim CEO "worse than ill-advised." The truck, bus and recreational vehicle maker today agreed to name two Icahn nominees to the company's board and to add a third who is mutually agreed upon by Navistar and Icahn.
Two Navistar board members resigned to make way for the new appointees and when the third is named, another current board member will go. The three new directors will stand for reelection at Navistar's annual shareholders meeting next year.
The troubled heavy truck maker has had difficulty building a new engine that complies with current EPA standards, and the share price has by more than 50% from a February high. Exactly how new board members will fix that remains to be seen.
Icahn owns about 15% of Navistar.
Navistar's shares are up about 6% this morning, at $22.47 in a 52-week range of $19.79 to $48.18.