MHR Fund Management LLC on Friday disclosed that it holds a 13.6% stake in Navistar International Cop. (NYSE: NAV), which makes it the largest NAV shareholder, and puts it ahead of Carl Icahn, who has a 11.9% stake in the company.
MHR was founded by Mark Rachesky, who is a former associate of Icahn. MHR disclosed that it owns 9.4 million shares in Navistar. The shares were bought between May 22 and June 13, the fund said in a filing with the SEC.
MHR built its position in the troubled company as shares fell to three-year lows following unexpected quarterly loss. NAV shares have also been dragged lower by reports that a U.S. appeals court would not allow the company to pay fines to get around restrictions on selling diesel truck engines that do not meet U.S. pollution standards.
MHR said in the SEC filing that it may discuss with the management and others regarding the business and operations of the company.
MHR’s disclosure comes a week after Icahn boosted his stake in Navistar to 11.9% from 10%.
Navistar shares have been extremely volatile in the last few days. On June 7, the stock plunged 28% following an unexpected quarterly loss. The stock recovered the next day after Icahn raised his stake in the company. NAV shares also recovered after Fiat Chairman Sergio Marchionne hinted that he was interested in the company.
On Friday, NAV shares rose 7.62% to finish the day at $29.95 on above average volume of 8.46 million.
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