Carl Icahn, the billionaire activist investor, offered to buy Oshkosh Corp. for about $3 billion, saying management of the military vehicles supplier has failed to deliver on pledges to improve profitability.
The $32.50-a-share offer is 21 percent more than the Oshkosh, Wis.-based company's Wednesday closing price, Icahn said Thursday in a statement. Icahn said he intends to nominate directors for election to Oshkosh's board at the company's annual meeting, with his offer conditional on those directors being elected.
Oshkosh, which supplies blast-resistant trucks to the U.S. Army and Marine Corps, posted a 66 percent drop in net income last year as its sales shrank with the end of the war in Iraq and the U.S.'s plans to withdraw troops from Afghanistan. Icahn, Oshkosh's largest investor with a 9.5 percent stake, has criticized the firm's executives.
"Management has taken a passive attitude to the future of this company, willing to sit back and watch what happens to the defense, housing and construction industries," Icahn said. "Oshkosh needs proactive shareholders to bring a proactive management team together to weather a volatile economy, a shrinking defense industry and a budget constrained municipal environment."
Oshkosh shares rose 11 percent Thursday to close at $29.90 after gaining as much as 17 percent. The shares have advanced 40 percent this year.
Icahn's 14.9 percent stake in Navistar International Corp. has fueled speculation of a merger between the two truckmakers. Navistar rose as much as 6.7 percent today on news of his offer for Oshkosh. They gained 2.8 percent to close at $22.61 in New York.
Icahn, 76, known for lobbying for change at the companies in which he invests, this week reached an agreement with Navistar to gain seats on the company's board.
Icahn has said Oshkosh should consider selling the JLG business, which makes construction lift equipment. Oshkosh shareholders on Jan. 27 rejected his attempt to install six candidates onto its 13-member board.
