Volkswagen Unit Makes Unsolicited Bid for Navistar -- Upate

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 [e-mail]

(END) Dow Jones Newswires

January 30, 2020 19:11 ET (00:11 GMT)

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