(Adds details, share price)
June 24 Truck and engine maker Navistar
International Corp said it adopted a tax asset
protection plan to guard against any ownership changes that
could hurt its ability to use net operating losses for tax
The tax plan is designed to discourage any person or group
from acquiring more than 4.99 percent of stake and would replace
its existing poison pill takeover defense, the company said on
An ownership change under the Internal Revenue Code can
occur when the percentage of one or more 5-percent shareholders
increases by more than 50 percent at any time during the prior
As of Oct. 31, Navistar had a federal net operating loss
carryforward of about $1.8 billion, the company said.
The existing shareholders, with more than 4.99 percent
stake, are exempt from the new tax plan unless they buy more
Carl Ichan's Icahn Associates Corp has 17.63 percent
ownership interest in Navistar, while Mark Rachesky's MHR Fund
Management owned 17.20 percent as of April 2014.
The existing poison pill exempted any person or group from
owning more than 19.99 percent of the company's common stock.
The plan, earlier set to expire on June 18, 2015, was last
week amended to expire on July 1.
The tax plan will end on Sept. 1.
Navistar shares closed at $37.54 on the New York Stock
Exchange on Monday.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Sriraj