Billionaire investor Carl Icahn has bought a 9.8 percent stake in military truck and recreational vehicle manufacturer Navistar International Corp.
Documents filed with the Securities and Exchange Commission show Icahn and affiliated funds bought 7.1 million shares for $118.1 million between Aug. 23 and Thursday.
Navistar shares jumped 8.6 percent in aftermarket trading.
The activist investor believed the shares were undervalued, according to the filing. Navistar shares are down 46 percent since hitting a high of $71.49 in April.
Navistar shares gained $3.32, or 8.6 percent, to $42 in aftermarket trading Thursday. The stock added 12 cents to $38.68 during the regular session.
Navistar is based in Warrenville, Ill. A call to the company after hours was not immediately returned.
Icahn has had discussions with Navistar management over adding board members, but no agreements have been reached, the filing said.
The billionaire, known for shaking up struggling companies, backed off a proxy fight with The Clorox Co. last month.
Icahn had proposed either selling the company, which he felt was not delivering the value to shareholders that it could, or buying it himself.
Clorox, which is based in Oakland, Calif., and makes salad dressing and beauty and cleaning products, dismissed his plans as not credible.