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.