Carl Icahn's proxy battle with Oshkosh Corp (OSK.N) management heated up as he called on the company to explore alternatives for its JLG aerial lift business and focus on debt reduction and its core truck and defense businesses.
Icahn, who owns more than 9 percent of Oshkosh shares, last year nominated six directors for Oshkosh's board. In a January 6 proxy letter to shareholders, sent three weeks before the company's January 27 annual meeting and director vote, he reiterated support for his nominees and defended his ability to steer Oshkosh's strategy.
Icahn criticized Oshkosh's executive team, saying it "provides no substantive ideas to proactively enhance shareholder value." He said the company's shares have underperformed of late and that company management overestimates the strength of the business.
Oshkosh shares were down about 1 percent at $22.74 in early trading Friday.
The relationship between Icahn and Oshkosh has been under a spotlight since the investor bought about a 10 percent stake in Navistar International Corp (NAV.N), which competes with Oshkosh. Icahn has said the two companies need to explore synergies.
Although Icahn did not mention Navistar in his January 6 letter to shareholders, he said Oshkosh needs to "participate in coming defense industry consolidation as both a buyer and/or a seller."
Icahn also said the company needs to "capitalize on a weak economy by consolidating existing niche businesses and entering new synergistic product lines rather than waiting to see how the economy progresses."
Earlier this week, Oshkosh Chief Executive Charles Szews and Chairman Richard Donnelly criticized Icahn in a company letter to shareholders.
"Mr. Icahn has not demonstrated that he has a plan or a team that can lead your company and deliver value to all Oshkosh shareholders," Mr. Icahn is seeking to control nearly half of the Oshkosh board, yet has provided no substantive ideas or analyses to enhance value for all shareholders."
The company also questioned the qualifications of Icahn's director nominees and said Icahn does not fully understand Oshkosh's business lines.
Source: John D. Stoll, Reuters