kscarbel Posted July 17, 2013 Share Posted July 17, 2013 Bloomberg / July 16, 2013Navistar International rose the most in more than two months after agreeing to let shareholders Carl Icahn and Mark Rachesky nominate two directors each to the truckmaker’s board.Navistar shares rose 9.7% to $31.99 at the close in New York, the biggest one-day gain since May 3.Icahn and Rachesky also agreed they won’t run a proxy contest at the company’s annual shareholders meeting in 2014, according to a statement. Navistar last year agreed to add three directors designated by Icahn Partners and Rachesky’s MHR Fund Management LLC. To make room for the fourth board representative, John Pope is retiring as a director immediately, Navistar said in the statement.The change “likely puts greater control in the hands of these activist investors,” said David Leiker, an analyst with Robert W. Baird & Company. "Icahn and Rachesky probably will increase their Navistar stakes to almost 20 percent each", said Leiker.Rachesky and Icahn are among Navistar’s largest shareholders and Rachesky is a director. Each investor owns almost 15 percent of Navistar. Chief Executive Officer Troy Clarke, who has led the company since April, is trying to end losses and wants Navistar to concentrate on its main truckmaking business.Navistar has surged 47% this year, compared with an 18% increase for the Russell 1000 Index. Quote Link to comment Share on other sites More sharing options...
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