Oshkosh Eliminates "Poison Pill"

The threat of a Carl Icahn takeover now abated, Oshkosh (NYSE: OSK  ) announced today that it is moving up the expiration date of its "Shareholder Rights Plan" from Oct. 25, to Jan. 7, i.e., today.

Oshkosh initially adopted the plan in question, commonly referred to as a "poison pill," in response to Icahn's Oct. 11 bid to purchase Oshkosh for $32.50 per share. At the time, Oshkosh called that offer "opportunistic" and responded by announcing a plan that would go into effect upon any would-be purchaser acquiring 10% or more of its shares. (Icahn already owned 10%). In essence, the plan made it more difficult, and expensive, for Icahn to purchase a controlling stake in the company absent cooperation from management.

Icahn dropped his bid to acquire the company last month and, with no other bidders having emerged in the meantime, Oshkosh is now eliminating the poison pill. Shares of the company had fallen 0.3% today as of this writing, and currently trade at $32.49 -- a penny below Icahn's offer.



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Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

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