Navistar to remove ‘poison pill’ takeover defence
WARRENVILLE, Ill. (Oct 17, 2001) — Navistar International Corp., maker of International trucks and engines, said yesterday it will remove a “poison pill” defense intended to make it prohibitively expensive for a hostile suitor to buy the company.
Shareholders voted to remove the pill, formally called a shareholder rights plan, in a non-binding resolution at Navistar’s annual meeting in February.
The pill requires any potential buyer to negotiate with the board. It was enacted in April 1999 amid speculation that the company was a takeover target by rival truck makers.
In removing the pill, shareholders will automatically be paid 1 cent in cash for each right. There is currently one right attached to each outstanding share of common stock.
Payments are expected to be mailed on Nov. 15 to shareholders of record on Oct. 26.
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