Volkswagen Unit Makes Unsolicited Bid for Navistar -- Upate
31 January 2020 - 11:26AM
Dow Jones News
By Kimberly Chin
The truck unit of Volkswagen AG has offered to fully take over
Navistar International Corp. in an all-stock transaction valued at
roughly $3.5 billion. A deal would combine two of the world's
largest truck makers.
Traton SE, which was formed out of Volkswagen's Truck and Bus
Group, owns a 16.76% stake in Navistar.
Germany-based Traton has made an unsolicited bid to acquire the
remaining Navistar stake for $35 a share, representing a 45%
premium on the company's closing price of $24.07 a share on
Thursday. Shares in Navistar rose 51% in after-hours trading.
Navistar said Thursday that it would carefully review and
evaluate the proposal.
Volkswagen offered as much as 11.5% of Traton last June in an
initial public offering of stock.
Navistar's international brand is well-known throughout the
North American trucking industry. As one of the largest U.S. truck
makers, the company has an extensive network of dealers and service
shops, serving as an important asset for Volkswagen.
Navistar is the successor company to International Harvester,
whose roots go back to Cyrus McCormick's invention of the
mechanical reaper for farm crops in 1831. International Harvester
was dismantled during the 1980s, leaving Navistar as a company
focused on trucks, engines and school buses.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
January 30, 2020 19:11 ET (00:11 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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