Icahn continues to pressure Navistar to act
Icahn said in letter on Tuesday that his previous comments were demands — not threats — that should be taken seriously. (AP photo)
The Associated Press
NEW YORK — Billionaire investor Carl Icahn continued to pressure Navistar on Tuesday to give shareholders more of a say in the decision-making process for the struggling heavy truck and engine company.
Two days earlier Icahn, who owns about 15 percent of Navistar International Corp.'s outstanding shares, sent a letter to Navistar requesting that the Lisle, Ill. company allow shareholders to appoint at least four board members.
On Monday Navistar said in a statement that it was disappointed by Icahn's tactics and that it maintains ongoing talks with its shareholders and appreciates their input.
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Icahn followed up with another letter on Tuesday, in which he said that his previous comments were demands — not threats — that should be taken seriously. He reiterated that he would like to amicably resolve the matter with the company, but is still prepared to proceed with a lawsuit or proxy fight if necessary.
A representative for Navistar could not be immediately reached for comment.
Navistar has struggled this year amid uncertainty about whether its Class 8 engine, used in the largest commercial trucks, would get Environmental Protection Agency approval. The company said in July that it was in talks with the EPA on a plan that would allow it to continue shipping trucks while it makes a transition to a new emission-reducing technology that will bring it into compliance with EPA requirements. The new technology is expected to be available beginning early next year. Navistar said then that the new plan would add to product development costs.
The company is working to cut other costs, is trimming its workforce and is considering putting some of its businesses up for sale.
Kevin Jones of The Trucker staff can be reached for comment at firstname.lastname@example.org.
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