Traton sets deadline for Navistar to accept buyout offer
LISLE, Ill. – Navistar International has until noon Eastern Friday 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 represents its “best and final offer.”
If not accepted by Traton’s deadline, the offer will be withdrawn, “unless prior to that time you have notified us in writing of your willingness to proceed with discussions with a view to entering into a transaction at that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.
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Navistar should accept this offer. I was a 44 year employee (now retired ) of Navistar and have seen them struggle for decades.
It may be their last chance to align themselves with a company that has “deep pockets” allowing them to compete on a level playing field with the likes of Volvo, Freightliner MBenz, Mack, Western Star, Paccar and provide them with the much needed funding for R&D as they look to the future.