Icahn Goes After Oshkosh|
Carl Icahn, activist investor, offered to buy the rest of Oshkosh Corp. (OSK)
that he does not already own in a deal that values the heavy-duty vehicle maker
at about $3 billion. Icahn, the largest shareholder of Oshkosh with a stake of
nearly 10%, is offering $32.50 a share, a premium of roughly 21% over
Wednesday's closing price. Oshkosh shares ended trading session on Thursday with
a gain of 11%. Icahn said he intends to nominate a slate of candidates to its
board. The offer increases speculation that Icahn will look to combine Oshkosh
with truck maker Navistar International Corp. (NAV) where he recently gained
board representation. "It is clear to me that 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, hoping for a
positive outcome and reduced competition," Mr. Icahn said. "I strongly believe
that 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 advised shareholders to take
no action while it reviews the offer and noted that Mr. Icahn was unsuccessful
in his attempt to elect any of his six nominees to Oshkosh's board at its annual
meeting. The company said it will advise shareholders of its position on Icahn
proposal within 10 days from the date of commencement. Icahn's offer is
conditioned on the election of his candidates to the board. Icahn is giving
holders 45 days to tender their shares and suggested extensions are possible.
Icahn plans to demand that the company's board move the annual shareholder
meeting forward to move up the election vote and closing of the deal if 40.1% of
Oshkosh shares are tendered.
U.S. stock indexes closed mostly unchanged on Thursday as excitement about a
decline in jobless claims dissipated during the mostly lackluster trading
session. The stall felt on Wall Street over the past few trading session is
highly attributed to uncertainty ahead of the U.S. presidential election less
than a month away. For the fourth day in a row, the Dow Jones Industrial Average
(DJIA) ended the session lower - down on the day by 18.51 points or 0.1% to
13,326.46. The S&P 500 index (SPX) gained a fraction to end at 1,432.86 and the
Nasdaq Composite (COMP) shed 2.40 points or 0.1% to 3,049.38.
The U.S. Labor Department reported Thursday, first-time jobless claims for state
unemployment benefits fell unexpectedly lower in the week ending October 6, to
their lowest level since mid-February - initial jobless claims fell 30,000 to
339,000. Four-week average fell 11,500 to 364,000 to strike the lowest level
seen since late March. Jobless claims for previous week were revised by Labor
Department with an increase of 6,000 to 369,000 compared with the initial
estimate of a gain of 4,000 to 367,000.
The U.S. Commerce Department said Thursday, the U.S. trade deficit widened by
4.1% in August to $44.2 billion. Import prices rose by 1.1% during August,
striking the second straight large gain due to a spike in imported oil prices.
Fuel import prices rose 4.4% in September. Import prices excluding fuel rose a
modest 0.2% in September after falling 0.2% in the prior month. Import prices
over the past year remain down 0.6%. Fuel prices are up 40.9% for 2012 and
non-fuel prices are up 5.4% over the past twelve months. During August exports
saw their third straight monthly decline. The U.S. trade deficit per with China
narrowed slightly to $28.7 billion in August compared with $29.0 billion in the
same month last year, per Commerce Department.
On the Chicago Board of Trade Thursday corn futures rallied with December corn
(CBC:CZ2) surging higher by 36 cents or 4.9% to $7.73 a bushel after the U.S.
Department of Agriculture cut its estimates on production and beginning stocks
for the 2012/2013 crop year. USDA cut its beginning stocks forecast for U.S.
corn on Thursday by 193 million bushels, based on the September 1 stocks
estimate and also lowered its U.S. corn production forecast by 21 million
trial to our Day Trading Rooms
for stocks, futures and forex. Professional Training
Programs available for stocks, futures and forex traders.
trading calls focus on NYSE, NASDAQ and AMEX.
trading calls focus on YM, NQ, TF and ES.
based on New York trading session focus on GBPUSD, USDCAD, USDJPY, EURUSD,
GBPJPY, USDCHF, EURJPY, EURAUD, AUDJPY, CHFJPY, EURCAD, GBPCAD and AUDUSD.
Detailed historic performance for all calls is available on our Market
Trading Lesson provides new trading subject every month.
Opt-in to our free Weekly MarketNews
sent via email, first trading day of the week which includes recap of markets
from previous week and what is ahead for
the upcoming trading week.
Free Chat Rooms - penny stocks, options, stocks, futures and forex! Chat
with other traders during off-peak market hours.
Oct 11, 2012