Volkswagen boosts bid for Navistar

Volkswagen boosts bid for Navistar

Traton, VW’s commercial truck division offers $3.6 billion for maker of Class 8 trucks, school buses, other commercial vehicles.

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Updated 9:20 a.m.: Navistar's board of directors has rejected the increased bid from VW's Traton. Details below in italics.

Munich, Germany; Lisle, Illinois – Volkswagen’s Traton SE commercial truck subsidiary, owner of Scania, MAN, and Volkswagen truck, has increased its bid to buy Navistar, the U.S.-based maker of commercial truck, buses, and military vehicles.

Traton already owns about 17% of Navistar, and it is offering $43 per share in cash to buy the rest. That’s a 23% increase from the $35 per share it offered in January.

“We continue to believe in the compelling strategic benefits that a complete merger of Traton and Navistar would produce. This is why we are re-emphasizing our interest in the transaction in spite of the Covid-19 pandemic,” said Matthias Gründler, CEO TRATON SE.

Navistar executives confirmed that they’ve received the VW offer and are considering its merits. rejected the increased offer, saying it "significantly undervalues the company."

”Navistar's Board of Directors and management team are committed to exploring all avenues to maximize value,” company officials said. “Consistent with its fiduciary duties, the board will carefully review the revised proposal from Traton in consultation with its advisors to determine the course of action that it believes is in the best interests of the company and its stakeholders.”

Executives said they considered the higher offer "a starting point for further exploring the possibility of a transaction."

Navistar’s answer is nearly identical to one it released in January when the initial offer arrived. Company officials said they don’t plan to say any more about the offer until the board has decided what to do.