MHR Fund Management has disclosed a 13.6% ownership stake in Navistar with 9,335,837 shares. This stake consists of common stock as well as numerous share forward transactions (right to buy) with various counterparties.
The filing was made due to activity on June 7th. MHR started acquiring shares of NAV in the open market in late May and the bulk of their purchases came between $26-27 per share. Their right to buy forward transactions have a price per share of $25.5399.
In Navistar, Rachesky has good company. He joins fellow hedge fund manager, Carl Icahn, in taking a stake in the battered shares of Navistar, who’s price has fallen from a 52 week high of $58.50 to a 52 week low of $20.21.
With two activists and the likes of other great investors like Arnold Schneider and Mario Gabelli, what are the odds that Navistar is undervalued?