Carl Icahn is an aggressive investor and most people would get out of his way when it comes to any business deals. But not his former employee Mark Rachesky. The NY Post reports that Rachesky is going head to head with Carl Icahn over the international truck maker Navistar.
Icahn and Rachesky are both board members of Navistar. Not long ago the company entertained a $2.9 billion buyout from Volkswagen. The deal would have set a value of $35 per share of Navistar stock. But hold on. This cocky 60-year-old kid (to the 84-year-old Icahn) came along and said that the company is worth double that at $70 a share. Such a high price has left the deal in jeopardy and Carl Icahn is none too happy about it.
According to Bloomberg, Volkswagen already owns a 16.7 percent stake in Navistar and is the company’s second-largest shareholder. It is currently trying to restart its bid for the company. Navistar’s value, however, has gone up to almost $3.5 billion since the offer by Volkswagen was first made and experts expect its purchase price to continue to increase. So maybe Carl Icahn should not be so upset with Rachesky after all?
“Any speculation on MHR setting a price is reckless and completely false, and only serves to create unnecessary distraction and strife,” a Rachesky spokesman said in a statement the NY Post quoted, declining to comment specifically on whether Rachesky had actually called for the higher price per share.
The Post also quoted other sources who said things like, “Navistar was not worth what Rachesky was asking for.”
“Maybe if Mark had said $55 to the other directors . . . a deal could have been had before the pandemic.”
And the curt, “The rest of the board is not in love with Mark.”
This morning Shares of Navistar were down 1.33%in pre-market trading to $36.86 vs. the 52-week range of $15.01 to $38.00.
Navistar boasts that it offers one of the world’s premier and most trusted truck brands. International Truck offers state-of-the-art performance and solutions for a variety of global markets. International Truck, the flagship vehicle brand, is supported by the industry’s largest dealer network and offers a complete lineup of integrated vehicles.
The company also makes school buses. Its IC Bus is a leader in passenger protection, chassis design, engines, and ergonomics. Navistar states that every IC Bus is sold, serviced, and supported through a renowned dealer network that delivers a trusted customer program that handles parts, training, service, and more.