Rolf Lockwood

Rolf Lockwood is editor emeritus of Today's Trucking and a regular contributor to Trucknews.com.

VW, Navistar: What’s the Deal?

Well, it finally happened. Rumored for many months, if not years, and now a fait accompli, Volkswagen Truck & Bus has bought a piece of Navistar International. While the gossip mill mostly envisioned an outright purchase by the German giant, yesterday's announcement described a less dramatic deal: VW is buying a 16.6% stake in the Illinois company. It will pay US$15.76 per share or a 25% premium over Navistar's 90-day volume-weighted average price as of Aug. 31, or 12% over Navistar's closing price on Sept. 2. Navistar will receive US$256 million from the equity investment to be used for general corporate purposes.