LISLE, Ill. – Navistar International has confirmed it has received an unsolicited takeover bid from Traton SE, the truck and bus division of Volkswagen.

The offer was for US$35 per share. Navistar closed trading today at US$24.07 but in after-hours trading shot up to US$36.44 – a 51.39% increase.

Traton already holds 16.8% of Navistar.

In a statement after markets closed, Navistar said “Navistar International Corp. today confirmed that it has received an unsolicited proposal from Traton SE regarding a potential transaction to acquire the company for $35 per share in cash.

“Consistent with its fiduciary duties, Navistar’s board of directors, in consultation with its financial and legal advisors, will carefully review and evaluate the proposal in the context of Navistar’s strategic plan for the company in order to determine the course of action that it believes is in the best interest of the company and its stakeholders.

“Navistar advises its shareholders to take no action, and no shareholder vote is required at this time.”

The company added it will be making no further comment at this time.

In its own statement, Traton said “Traton and Navistar have benefited from a strategic alliance that has delivered significant value to both companies through increased purchasing power and the integration of new technologies.

“As the global commercial vehicle industry continues to evolve, Traton believes that the proposed transaction is the logical next step and would result in even greater benefits.”

“Over the past three years, we have benefited from a highly collaborative and productive strategic alliance with Navistar,” said Traton chief executive officer Andreas Renschler.

“As the market continues to evolve, we believe there are compelling strategic and financial benefits to a full combination of Traton and Navistar. The proposed transaction would create a leader in commercial vehicles with global scale and a strong portfolio of leading brands and cutting-edge products, technologies and services while delivering immediate and substantial value to Navistar stockholders.”