Navistar rejects latest Traton share bid on valuation grounds
By Jim Gibbins - 1st October 2020
USA / Germany – After careful consideration with the assistance of its financial and legal advisors, the Board of Directors at CV builder, Navistar International Corporation of Lisle, Illinois, USA, has unanimously concluded that the revised bid of USD43.00 per share for the remaining shares in Navistar by the Traton Group of Munich, Germany, significantly undervalues the company and the substantial synergies from a combination of the two organisations. The board, however, stated it does represent a starting point for further exploring the possibility of a transaction.
Traton has developed a strong strategic relationship with the Navistar in recent years, and, in light of the 23% increase in their proposal, the Navistar Board believes the best way for Traton to appreciate the true value of a potential combination is to allow it to conduct due diligence and engage in further synergy discussions.
