Investor Wants Navistar To Look At Merger Opportunities
July 26, 2000
One of Navistar International's institutional investors is meeting with other shareholders today to discuss ways to maximize shareholder value in the wake of announcements by DaimlerChrysler that it is buying Western Star and Detroit Diesel.
A broad cross-section of Navistar's largest institutional shareholders have accepted invitations
to attend the meeting, called by Providence Capital.
"As emphasized by DaimlerChrysler's pending acquisitions of Detroit Diesel and Western Star, the truck and diesel engine industries are being consolidated by the larger manufacturers," said Herbert A. Denton, president of Providence Capital. "Accordingly, we plan to discuss a wide range of strategic alternatives currently open to Navistar's Board of Directors to maximize shareholder value."
Denton reportedly wants the company to look into merger opportunities, and says the stock should be selling much higher than it is.
Providence Capital describes itself as "an independent investment bank with a mission to maximize shareholder value by fostering strategic change."