Some Large Navistar Shareholders Urge Sale Options to Boost Stock
A group of institutional shareholders of Navistar International stock late Wednesday said they would call on the truck-making company’s board to consider drastic options including selling the entire company in order to boost a sagging stock price.
Denton said Navistar’s stock should be worth about $87 a share, but it has been trading around $34.
The meeting, called by investment bank Providence Capital Inc. in the wake of new acquisitions by Navistar rival Freightliner and its DaimlerChrysler parent, drew 45 investors with a combined 25-30% of outstanding Navistar shares, said Providence President Herbert Denton.
He added that in all, institutional investors hold 73.4% of Navistar stock.
Denton told reporters in a conference call that the group would call on Navistar’s board to produce a strategic plan, which should look at selling the company, selling off a portion such as Navistar’s engine-building unit, or look for a ”merger of equals.”
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