April 17, 2001

Navistar Board Takes No Action on Shareowner Resolution to Remove Shareowner Rights Plan

CHICAGO, April 17 -- Navistar International Corporation (NYSE: NAV) announced today that the company's board of directors took no action on a shareowner resolution requesting the board to remove a preferred share purchase rights plan that is designed to protect shareowners against unsolicited takeover tactics. The company is not aware of any such attempt at present. The board adopted the shareowner rights proposal two years ago. A majority of shareowners at the company's annual meeting last February 20 voted in favor of a proposal by GAMCO Investors, Inc. to request the board to remove the rights plan.

John R. Horne, Navistar, chairman president and chief executive officer, said directors seriously considered the shareowner resolution at its regularly scheduled meeting but felt that it was best to leave the rights plan in place. "We are in a changing industry that is at the bottom of the business cycle and our stock price is low relative to our long term prospects," Horne said. "Particularly under these circumstances, the Navistar board of directors felt the rights plan is in the best long term interests of shareowners because it maintains the board's ability to effectively represent the interests of the company and shareowners in the event of an unforeseen unsolicited takeover attempt."

Horne noted that the board regularly reviews the rights plan and could vote to remove or amend it if future circumstances dictate a change. Navistar International Corporation (NYSE: NAV) is the parent company of International Truck and Engine Corporation, a leading producer of mid-range diesel engines, medium trucks, school buses, heavy trucks, severe service vehicles, and parts and service sold under the International® brand. The company also is a private label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. With world headquarters in Chicago, Navistar had 2000 sales and revenues of $8.5 billion. Additional information can be found on the company's web site at www.internationaldelivers.com SOURCE Navistar International Corporation


Close window | Back to top

Copyright 2018 Navistar International Corporation