Navistar Shares Up 55% on Traton Buyout Offer
January 31 2020 - 10:15AM
Dow Jones News
By Chris Wack
Navistar International Corp. (NAV) shares rose 55%, to $37.37,
in early trading after the company said it was being bought by the
truck unit of Volkswagen AG (VOW.XE) in an all-cash transaction
valued at $2.9 billion.
The unsolicited proposal from Traton SE is for $35 a share in
cash, a 45% premium to Navistar's closing price of $24.07 a share
Thursday.
Traton already owns a 17% stake in Navistar.
Analysts at Baird said the move was "no surprise," and
downgraded Navistar to "Neutral" from "Outperform."
The Baird note said the combination would make Traton a global
player in the commercial vehicle space, competing with Daimler,
Paccar and Volvo. The analyst also said another buyer seems
unlikely.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 31, 2020 10:00 ET (15:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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