This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Icahn Boosts Navistar Stake After Trucks Bet Hits Speed Bump

Stocks in this article: OSK NAV CHK

NEW YORK ( TheStreet) -- Activist investor Carl Icahn is doubling down on Navistar (NAV - Get Report) after launching a mistimed bet on truck manufacturers a year ago.

On Friday, Icahn disclosed that he's upped his stake in Navistar to nearly 12% from 10.6%, buying up 883,200 shares at an average price of $24.44, according to a filing with the Securities and Exchange Commission. That comes after Icahn opened a top position in the Lisle, Ill- based truck maker's shares when they were trading above $30 in the fall of 2011.

Icahn -- who is a top shareholder in Navistar -- also took a near 10% stake in truck maker Oshkosh (OSK - Get Report) last June, in an activist investment that comes amid falling government orders for trucks, fire engines and military vehicles. So far, Icahn's big rig play has performed poorly as he's struggled to get both truck makers to consolidate or induce drastic change.

The disclosure of Icahn's stake caused Navistar shares to rally nearly 20% to $28.69 in Friday trading, pulling the truck maker further from 52-week lows just above $20 hit earlier in in the week. Oshkosh shares rallied nearly 3% to $20.75. Year-to-date, Navistar shares are off nearly 25% while Oshkosh shares are down almost 3%.

Navistar is one of the nation's largest commercial truck makers while Oshkosh is the leading U.S. military truck maker.

In October, Icahn took a 9.8% stake in Navistar a maker of commercial trucks, busses and diesel engines. That move followed Icahn's disclosure of a 9.5% stake in armored vehicle maker Oshkosh (OSK - Get Report) last June.

In the investments, Icahn has pushed for board changes and even indicated that both company's assets could be rationalized through a merger. After opening near his investments, Icahn said "I definitely think it would be a good merger. I think there would be a lot of synergy. I own stock in both and I think shareholders of both companies would benefit," in a December CNBC interview.

"Combining the two would be like combining Porsche and General Motors (GM)," Brian Rayle a managing director of research at Northcoast Research told TheStreet in October, when speculation of a possible tie up began.

In a given day Oshkosh might make one or two specialty military or fire trucks, while Navistar can build five hundred commercial trucks a day, signaling that their operations differ greatly, noted Rayle, who also highlighted differing manufacturing practices as other headwinds for a deal.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs