Wow! I'll bet the market just snaps these up. Bought deal; more grief for the poor souls who drank the Kool-Aid and held onto their shares. I'm seeing $15 by close of trading today. Crystallize your tax losses now, folks. It's only going to get worse.
NAV bought back alot of these shares when the stock was about $40.
They are going to take a 50% loss because they need CASH, now!!
And, of course, NAV knows these shares will be worth less in a few months (otherwise they would wait, right?).... so SELL now!
You would think Navistar's poison pill agreement with its top institutional shareholders would violate them from issuing new shares as this would dilute the % share held by icahn rachesky and templeton. If this is allowed to go though look for the stock to be in the low teens.
Rachesky, and Icahn's representative, Vince Intrieri, are seated on NAV's board. My guess: all of the shares go to their funds, say, 10% of the company for $250 million each, putting them at 50% of the outstanding shares. Small shareholders, investors with subordinated bonds, and unsecured creditors get dusted, while they end up owning the company. If they can't turn it without a Chapter 11, they control the filing and the subsequent restructuring plan, and come out the other side owning a property with some value, shorn of excessive debt, union agreements, obligations to repay government incentives, retiree liablities, etc. Right in PrezBo's back yard!