However, Goldman Sachs sees the company a little differently. On Monday the firm downgraded Navistar to ‘Sell’ due to an expected downturn in US military vehicle demand.
Icahn tells us the military contracts aren’t all that important to them.
And Icahn believes that so many companies have put off buying trucks that fleets are aging. "They can't keep trucks for much longer than 7 or 8 years," he says. "When I look ahead a few years for Navistar I see good things."
El Paso
As the company's largest individual shareholder Carl Icahn certainly found a winner in El Paso.
On Monday Kinder Morgan announced plans to take over El Paso for $21 billion – a 37% premium to Friday’s close.
The combined El Paso and Kinder Morgan would own about 80,000 miles of pipe stretching from coast to coast, and could demand higher transport fees from oil and gas producers, which could then raise the prices that power companies and other end users pay for gas.
”We like the deal,” Icahn tells us in a live interview. “It’s a win win. These pipeline haven’t really been appreciated and the synergy makes a great deal of sense.”
The deal derails El Paso's plan, announced in May, to split into two publicly traded companies, which would have separated its exploration and production business from its pipeline operations. Kinder Morgan said it plans to sell El Paso's exploration and production assets.
It was not immediately clear how regulators would view the deal. Kinder Morgan said it expected the deal to close in early 2012.
"I think it goes through," Icahn says. And even if it doesn't, he also says, "I really think El Paso is undervalued anyway."
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Trader disclosure: On Oct 17, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long MS; P. Najarian is long YHOO; P. Najarian is long WFT calls; P. Najarian is long WFC calls; P. Najarian is long HPQ; Weiss is short CAT; Weiss is long EUO; Weiss is long QCOM; Weiss is long HPQ; Weiss is long RIMM; Weiss is long NS; Weiss is long NIHD; Grasso owns AA; Grasso owns AKS; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; J. Najarian owns WYNN call spreads; J. Najarian owns AAPL call spreads; J. Najarian owns LVS call spreads; J. Najarian owns WFT call spreads; J. Najarian owns SWN call spreads; J. Najarian owns EUO call spreads; J. Najarian is long CIGX; J. Najarian long CBOE; J. Najarian long CME; Edwards is long XLK; Edwards is long TQNT
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