Navistar rejects Traton’s buyout offer, calls it starting point

Navistar rejects Traton’s buyout offer, calls it starting point

Navistar International Corp on Monday rejected Volkswagen truck unit Traton’s buyout offer of $43 per share, but said it was a starting point for exploring a possible transaction.

The German automaker has raised its $35 per share January offer as it looks to increase its 16.6% stake in the U.S. truck maker Navistar acquired in 2016. Analysts at Jefferies have said Navistar is worth at least $45 a share.

The company said Traton’s proposal significantly undervalues it.

The truck sector faces pressure to consolidate and share the costs of developing low-emission technologies. Traton and Navistar have been collaborating on purchasing and developing electric vehicle technology.

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