Dump truck

8 April 2020 By Christopher Thompson Follow @CGAThompson

The activist was finally set to make a fat return on the U.S. truck maker thanks to the German carmaker’s $2.9 bln offer. But the deal was never signed, and the target’s shares have halved. Given CEO Herbert Diess may have to take state aid, another Icahn bet may bite the dust.

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Volkswagen-owned Traton said on Jan. 30 that it had offered $35 a share in cash, or $2.9 billion, for the shares of U.S. truck maker Navistar International that it does not already own.

Navistar said it would “carefully review and evaluate” the offer.

Financier Carl Icahn’s fund controls 16.9% of Navistar's shares. Icahn and two other activist funds, Mark Rachesky's MHR Fund Management and Gabelli Funds, together own 40% of Navistar's shares, according to Refinitiv data.

Navistar shares rose 7.8% to $18 by 1545 New York time on April 7.

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