Navistar International Corp. on Sept. 14 issued a statement from its Board of Directors regarding the revised proposal from Traton SE, which is Volkswagen AG’s commercial truck business.
“Navistar's Board of Directors, after careful consideration with the assistance of its financial and legal advisors, has unanimously concluded that while Traton's revised proposal of $43 per share significantly undervalues the company and substantial synergies from a combination, it does represent a starting point for further exploring the possibility of a transaction,” Navistar said in a statement. “Traton has developed a strong strategic relationship with the company in recent years, and, in light of the 23% increase in their proposal, the Board believes the best way for Traton to appreciate the true value of a potential combination is to allow it to conduct due diligence and engage in further synergy discussions with the company.”
Navistar said it “does not intend to make any additional comments regarding the proposal, its engagement with Traton, or the due diligence process unless and until it is appropriate to do so, or a formal agreement has been reached.”
VW's Traton initially purchased its stake in Navistar in September 2016, laying the groundwork for a footprint in the North American market. In January 2020, Traton offered to buy the rest of Navistar in a $2.9 billion bid, and on Sept. 10, Traton increased its bid to acquire all shares in Navistar, offering to buy the rest of the truck manufacturer for $3.6 billion in cash.
Traton already holds a share of 16.8% and has offered to purchase the stock it doesn’t yet own for $43 per share, an increase from its January offer of $35 per Navistar share. If a proposal is accepted, Traton could become the sole owner of Navistar.
