Truck maker Oshkosh Corporation(NYSE:OSK) just lost one of its prospective bidders, billionaire investor Carl Icahn, who gave up his bid to acquire the struggling company.
Just about less than a quarter of the company's shares had been tendered before Icahn's offer expired. Oshkosh shares slipped more than 4 percent on Tuesday.
Of course, Icahn had earlier warned that if the threshold offer level was not met then he would withdraw the bid. When his offer expired on Monday, only about 22 percent of the shares had been tendered under the offer. Icahn's threshold was 25 percent.
Icahn had said that the 25 percent level would show that he has enough support for his plans and would justify the extension of the $32.50 per share tender offer until the Wisconsin-based company holds its upcoming annual shareholders meeting, a report in the Associated Press said.
The billionaire, who has the reputation of snapping up struggling firms and turning them around, had said that the truck manufacturer needed a new management as well as a new strategy to put it back on its feet.
However Oshkosh had not been thrilled by Icahn's offer calling it "highly conditional, inadequate and opportunistic." The company had also provided for a `poison pill' to take effect - a strategy used by vulnerable corporates to prevent a hostile takeover.
In a statement on Tuesday, Oshkosh said its board and management team were grateful for shareholders' support and are focused on executing its strategy and "on generating substantial value for our shareholders."