(Bloomberg)
Embattled truck and diesel engine maker Navistar International yesterday poured gasoline on the fire ignited Sunday when billionaire investor Carl Icahn called the company’s board a “poster child for abysmal business decisions and poor corporate governance.”
Less than a day after the billionaire investor blasted the Warrenville, Ill., company for not consulting shareholders on its new CEO hire, Navistar dismissed his complaints as “unproductive tactics of threats, attacks and disruption.”
“Rest assured the board and management have a clear path forward and are focused on executing on their plan and delivering value to shareholders,” the board said in a press release.
Icahn fired the first salvo late Sunday with a scathing letter to Navistar’s board of directors, which he accused of being “at war with its own shareholders.”
At issue is the company’s hiring of former Textron CEO Lewis Campbell as chairman and interim CEO — a move Icahn called “worse than ill-advised.”
The company has also been struggling with its strategy and last month dropped plans for a new diesel engine after failing to get regulatory approval.
Icahn asked the board to make four director seats available to shareholders in order to prove it is “willing to allow voices with a shareholder’s point of view to be heard.”
Icahn bought close to 10 percent of the stock last year at a time when it was trading as high as $41 a share.
Navistar shares closed down yesterday 3.1 percent to $23.99.
Icahn is the third-largest shareholder in Navistar, with a stake of close to 15 percent. MHR, which is run by former Icahn protégé Mark Rachesky, also owns 15 percent.
In June, Navistar adopted a poison pill after Rachesky disclosed his growing stake.