Navistar Sets $44.50/Share Price Tag for Traton Deal
October 16 2020 - 11:13AM
Dow Jones News
By Colin Kellaher
Navistar International Corp. on Friday said it is willing to be
acquired by Volkswagen AG's Traton SE unit, but at a higher price
than the offer currently on the table.
The Lisle, Ill., maker of trucks and buses said it is prepared
to move forward with a transaction in which Traton would pay $44.50
a share in cash, which would value Navistar at roughly $4.43
billion.
Traton, which already owns a 16.7% stake in Navistar, is
currently offering $43 a share, up from an initial bid of $35. The
company earlier this week said its proposal would expire Friday
unless it Navistar indicated a willingness to engage.
Navistar said that following talks with Traton, its board asked
the German truck maker to confirm that a price of $44.50 a share is
a basis for a definitive agreements, adding that a deal at that
price has the support of two of its largest shareholders, including
billionaire investor Carl Icahn, who owns a 16.8% stake, and MHR
Fund Management, with a 16.3% interest, according to data from
FactSet.
Shares of Navistar were recently up 20.9% to $42.83, while
Traton shares gained 1.1% to EUR17.93.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
October 16, 2020 10:58 ET (14:58 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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