Carl Icahn Takes 9.8% Stake in Navistar

NEW YORK ( TheStreet) -- Activist investor Carl Icahn has taken a 9.8% stake in Navistar ( NAV) after not previously holding a position, according to a regulatory filing late Thursday.

The investment in the truck, bus and diesel engine maker follows Icahn's disclosure of a 9.5% stake in armored truck maker Oshkosh ( OSK) back in June.

Similar to the rationale he cited for the Oshkosh investment, Ichan said in the 13D filing with the Securities and Exchange Commission that he had "a "belief that the Shares were undervalued at current levels" and that he's "had conversations with management" to discuss the company's business" in reference to Navistar.

The filing also indicated that Icahn may seek representation on Navistar's board.

Navistar shares were last quoted at $42.15, up nearly 9%, on after-hours volume of roughly 70,000, according to Nasdaq.com. Based on a regular session close at $38.68, the stock was down more than 35% so far in 2011.

In its fiscal third quarter ended July 31, Navistar reported revenue of $3.5 billion and net income of $1.4 billion -- boosted by a tax benefit of over $1 billion. The Warrenville, Ill.-based company's adjusted earnings came in at $61 million, or 79 cents a share.

The average estimate of analysts polled by Thomson Reuters is for Navistar to report earnings of $3.16 a share in its fiscal fourth quarter ending this month with revenue seen reaching $4.5 billion.

-- Written by Antoine Gara in New York

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