MHR Fund Management Elects Members to Board of Navistar International Corp (NAV)

In a filing with the Securities and Exchange Commission Mark Rachesky’s MHR Fund Management, revealed that Dr. Rachesky, the President of Fund Management, and Michael Sirignano, a Principal at Fund Management, were re-elected and elected, respectively, to the board of Navistar International Corp (NYSE:NAV) at the 2014 Annual Meeting. As per the terms of the Settlement Agreement Amendment, Dr. Rachesky and Mr. Sirignano were nominated by MHR to the board.


Navistar International Corp (NYSE:NAV)


Mhr Fund Management holds 13.07 million shares of Navistar International Corp (NYSE:NAV), amassing a 16.1% stake in the company’s common stock.


Navistar International produces International brand commercial and military trucks, and IC Bus brand school, MaxxForce® brand diesel engines, and commercial buses.


According to a company press release, by expanding vehicle enhancements and powertrain choices on International brand vocational truck models, Navistar International Corp (NYSE:NAV) is investing in its severe service and medium-duty product lines.


Early this month, Navistar International Corp (NYSE:NAV) announced its first quarter results for 2014, wherein it posted a net loss of $248 million, or $3.05 per diluted share, versus a net loss of $123 million, or $1.53 per diluted share in the first quarter of 2013. Revenues were also down to $2.2 billion from $2.6 billion in the first quarter of 2013. This decline was due to low sales volumes, which was impacted by the company’s medium-duty emissions strategy transition and lower military sales; this was partially offset by $67 million in reduced structural costs. The first quarter results also included $18 million in asset impairment charges and an unfavorable impact of $21 million due to fluctuations in foreign exchange rates.


Other ‘hedgies’ bullish on Navistar International Corp (NYSE:NAV) are Carl Icahn’s Icahn Capital Lp, which held 13.3 million shares worth $508.3 million.


MHR Fund Management was founded by Mark Rachesky, who previously worked at Carl Icahn’s hedge fund. The fund has a stake worth $1.6 billion in 51.3 million shares of Lions Gate Entertainment Corp (NYSE:LGF), representing its largest holding in its equity portfolio. This is followed by a 8.1 million share position in Loral Space & Communications Inc (NASDAQ:LORL), worth $658.4 million.


A couple of months ago, MHR Fund Management initiated a stake in Titan International Inc (NYSE:TWI), and reported owning 5.8 million shares, which represents 10.9% of the common stock outstanding.


Disclosures: none


Recommended reading:


MSD Capital Trims Its Stake in DineEquity, Inc (DIN)


Select Equity Group Raises Stake in Walter Investment Management (WAC)


Mark Stupfel’s Cortex Capital Management Is Bullish On These Stocks

Sign Up

Get the InvestingChannel
Free e-Letter Today

Learn More

Independent market opinion, analysis and ideas - delivered every business day

Premium market opinions, analysis, and ideas - delivered every business day

Editor's Picks