Equipment Type

Navistar Investors Near "Poison Pill" Trigger

Two major Navistar investors have purchased more stock, inching close to the 15 percent ownership level that would trigger the company’s poison pill provision passed last month.

August 08, 2012

Two major Navistar investors have purchased more stock, inching close to the 15 percent ownership level that would trigger the company’s poison pill provision passed last month.

Carl Icahn now owns 14.9 percent of the company, and MHR Fund Management owns 14.99 percent. Franklin Resources owns 18.8 percent, but it would only trigger the poison pill if it purchased more stock.

Also, Navistar has offered “voluntary departure” packages to salaried employees and that layoffs may occur as a last resort in order to bring the company to profitability. Last week, Navistar pulled its 2012 outlook and said it could lose up to $115 million in the third quarter.

Navistar was given millions in tax incentives from both the State of Illinois and its new home, Lisle, Ill., when it consolidated its headquarters there last year. Those incentives are tied to employment numbers.

More like this

Comments on: "Navistar Investors Near "Poison Pill" Trigger"

Overlay Init