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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