Carl Icahn, a well known activist investor has dropped the clinger on the offer he made to Oshkosh Corp. (NYSE:OSK) regarding a potential takeover. I cahn had offered to buy shares of the special vehicles company, but has now hinted that he would drop the offer should the shareholders of the company tender less than 25 percent of the shares, reported Bloomberg.
Carl Icahn’s offer of $32.50 per share, or a total of $3 billion in total is set to expire on December 3rd, at midnight EST. Oshkosh Corp. (NYSE:OSK) designs, manufactures, and markets a range of specialty vehicles and vehicle bodies worldwide. Icahn has battled with Oshkosh even during times when the company was struggling.
He played a big part in the company’s separation from JLG, after he earmarked that JLG was in a good position to stand on its own. Oshkosh which manufactures assembles and supplies military special vehicles has a market cap of $2.77 billion well below Carl Icahn’s takeover offer of $3 billion. However, the company’s enterprise value stands at $3.29 billion.
Oshkosh reported $540.70 million worth of cash reserves, or $5.91 cash per share in the most recent quarter. Revenues stood by $8.18 billion or $89.58 per share, as per its 91.56 million shares of common stock outstanding for the trailing-twelve months. Gross profit stands at $991 million, while EBITDA is pegged at $492.70 million.
Oshkosh faces competitions from Federal Signal Corp (NYSE:FSS), Terex Corp. (NYSE:TEX), and the privately held BAE Systems Land & Armaments Inc. in the trucks and other vehicles industry. Oshkosh Corp. (NYSE:OSK) holds a slightly better price to earnings ratio (P/E) as compared to the compatitors, with 11.99 times, as compared to 19.79x of Terex Corp. (NYSE:TEX), while the industry average stands at 13.48x.
At the time of this writing, Oshkosh Corp. 9NYSE:OSK) was trading at $30.06 per share, down $1.36, or 4.33 percent decline from yesterday’s close.The stock was downgraded from Buy to Hold by Standpoint research in September.