The board of directors for Navistar International Corp. on Monday said Traton’s revised proposal to acquire the manufacturing company at $43 per share “significantly undervalues” the business, but added that it represents a starting point for “further exploring the possibility of a transaction.”
Volkswagen AG subsidiary Traton SE, which manufactures commercial vehicles under brands that include MAN and Scania, presented a revised bid to Lisle, Ill.-based Navistar on Sept. 10 that represents a 23% increase per share over an unsolicited bid it offered in January 2020. Navistar manufactures commercial trucks under the International brand.
Traton estimates it already holds about 16.8% of Navistar’s outstanding shares.
According to the news release from the Navistar board, “In light of the 23% increase in their proposal, the 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 with the company.”