US-based truck maker Navistar has accused major shareholder Carl Icahn of conducting a campaign of “threats, attacks, and disruption” and said it remains committed to a plan of cost reductions and possible asset sales.
Navistar’s statement followed an open letter from billionaire investor Carl Icahn issued yesterday that was heavily critical of the Navistar board for not consulting with major shareholders on board appointments as well as for an ‘abysmal track record’ that has led to a plunge in Navistar’s share price.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Navistar’s short statement in response reads:
“The Navistar Board takes its fiduciary duties very seriously and is committed to acting in the best interest of the Company and all of its shareholders. Navistar has recently taken a number of important actions, including appointing new leadership, defining and beginning to implement a new clean engine solution, accelerating cost reduction actions, and undertaking a review of its non-core businesses, all with the goal of driving long-term profitability and delivering shareholder value.
“Navistar maintains an ongoing dialogue with its shareholders, and appreciates their input and views. As such, after a year of dialogue, we are extremely disappointed that Mr. Icahn has chosen to pursue his unproductive tactics of threats, attacks, and disruption rather than continuing constructive engagement, particularly at this important time for Navistar. Rest assured, the Board and management have a clear path forward and are focused on executing on their plan and delivering value to shareholders.”
Below is Carl Icahn’s open letter of September 9, reproduced in full, and issued as a press release by Carl Icahn.
