LISLE, Ill. – Navistar International’s Board of Directors has responded to Traton’s final buyout offer of US$43 per share, saying it will accept US$44.50.
Navistar says the $44.50 price has the support of Navistar’s two largest shareholders.
In a letter to Traton, Navistar asked the company to publicly announce an extension to negotiations so the two sides can finalize a deal at the new proposed price.
Earlier this week, Navistar was given until noon Eastern today to accept a US$43 per share offer from Volkswagen’s Traton for all outstanding shares.
Traton first offered $35 per share on Jan. 30, but increased its offer on Sept. 10.
“As we have indicated in our discussions, our findings in due diligence lead us to believe that our price of $43 per share fully values the Company,” Traton said in a letter to Navistar, posted on its website. “We still believe that this price of $43 per share reflects an extremely attractive premium to Navistar shareholders.”
Traton said its $43 per share offer represented its “best and final offer.”
If not accepted by Traton’s deadline, the company said its offer would be withdrawn, “unless prior to that time you have notified us in writing of your willingness to proceed with discussions with a view to entering into a transaction at that price.”
If that is not the case, Traton said it will terminate discussions between the companies.
The market seemed optimistic a deal would get done, with NAV shares trading up 21% at the time of this writing, at US$42.84.
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