Icahn Ends Hostile Takeover Bid for Oshkosh Truck

This is good news for the sta­tus quo at Oshkosh. Though, Icahn does have a point in his takeover bid; even­tu­ally Oshkosh will have to diver­sify its prod­uct line and move beyond mil­i­tary con­tracts.  Recent lay­off announce­ments are show­ing the cost of that cor­po­rate gov­er­nance in spades.

Icahn is known for pretty much doing hos­tile takeovers with the full intent of never help­ing a com­pany build.  He and his team have a his­tory of just going in, sell­ing off the prof­itable parts and then watch­ing the rest of the com­pany die on the vine.

Bil­lion­aire investor Carl Icahn is giv­ing up his bid to buy truck maker Oshkosh after less than 25 per­cent of the company’s shares were ten­dered before his offer expired.

OshKosh Corp. shares fell more than 5 per­cent in morn­ing trad­ing Tuesday.

Last week Icahn made it clear that he would walk away from his bid that val­ued the com­pany at about $3 bil­lion if the thresh­old wasn’t met. The ten­der offer expired on Mon­day, with about 22 per­cent of the shares tendered.

Icahn, who is known for buy­ing stakes in strug­gling com­pa­nies and then shak­ing them up with mixed results, had pre­vi­ously main­tained that Oshkosh needs new man­age­ment and a new strategy.

But he had said that he would “move on to other endeav­ors” if he did not get at least 25 per­cent of Oshkosh’s shares in the ten­der offer.

Icahn had said that the 25 per­cent level would show that he has enough sup­port for his plans and would jus­tify the exten­sion of the $32 .50 per share ten­der offer until the Wisconsin-based com­pany holds its upcom­ing annual share­hold­ers meeting.

Oshkosh Corp. is mak­ing money, but where it goes in future is in question.

As for Icahn, he’ll move onto some­thing else no doubt about it.  Ear­lier this year he bought a ton of Net­Flix stock, so who knows what his plans are for them?

Like Oshkosh Corp., they aren’t too pleased to see he has an increased inter­est in them.

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