Navistar Board Keeps Poison Pill Handy

April 18, 2001
The board of directors for Chicago-based Navistar International Corp. has decided not to remove a “poison pill” plan adopted two years ago, designed to protect shareholders against unsolicited takeover tactics – despite shareholder requests to drop the provision. A majority of shareholders at the company’s annual meeting last February voted in favor of a proposal by GAMCO Investors Inc. to request
The board of directors for Chicago-based Navistar International Corp. has decided not to remove a “poison pill” plan adopted two years ago, designed to protect shareholders against unsolicited takeover tactics – despite shareholder requests to drop the provision.

A majority of shareholders at the company’s annual meeting last February voted in favor of a proposal by GAMCO Investors Inc. to request the board to remove the plan. However, the board, headed by Navistar chairman and CEO John R. Horne, decided not to do so.

“We are in a changing industry that is at the bottom of the business cycle and our stock price is low relative to our long-term prospects,” Horne said in a press statement regarding the board’s decision. “Particularly under these circumstances, Navistar’s board felt the rights plan is in the best long-term interests of shareholders because it maintains the board’s ability to effectively represent the interests of the company and shareholders in the event of an unforeseen, unsolicited takeover attempt.”

The $8.5-billion manufacturer of International mid-range diesel engines, school buses, highway tractors and medium trucks, began rolling out a completely redesigned line of trucks in February following years of engineering and $1-billion worth of investments, especially in new manufacturing equipment.

Yet the rollout came just as sales of new trucks fell precipitously, dropping 55% for Class 8 vehicles and 30% for medium trucks in the last nine months.

About the Author

Sean Kilcarr | Editor in Chief

Sean reports and comments on trends affecting the many different strata of the trucking industry -- light and medium duty fleets up through over-the-road truckload, less-than-truckload, and private fleet operations Also be sure to visit Sean's blog Trucks at Work where he offers analysis on a variety of different topics inside the trucking industry.

Sponsored Recommendations

Tackling the Tech Shortage: Lessons in Recruiting Talent and Reducing Turnover

Discover innovative strategies for recruiting and retaining tech talent in the trucking industry at our April 16th webinar, where experts will share insights on competitive pay...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

Stop Sweating Temperature Excursions

Advanced chemical indicators give you the peace of mind that comes from reliable insights into your supply chains. Compromised shipments can be identified the moment they arrive...

How Electric Vehicles Help You Prolong the Life of Your Fleet

Before adopting electric vehicles for commercial/government fleets, prioritize cost inquiries. Maintenance is essential; understand the upkeep of EV fleets. Here’s what you need...

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!