Navistar International has fired back and rejected the revised takeover bid offer made by Traton late last week, saying that the US$43 per share proposal ‘significantly undervalues the Navistar’.
However, while rejecting the increased offer from Traton, Navistar said it is open to further negotiations.
As previously reported in T&B News Traton already owns 16.8 per cent of Navistar and is eager to purchase the remaining stock to give it full control of the US based truck maker and in so doing give the VW owned operation a truck foot print in the North American market .
Traton upped its previous standing offer of $35 per share for Navistar last week in a hope that the Navistar board of directors would approve it.
“Navistar’s board of directors, after careful consideration with the assistance of its financial and legal advisors, has unanimously concluded that while Traton’s revised proposal of $US43 per share significantly undervalues the company and substantial synergies from a combination, it does represent a starting point for further exploring the possibility of a transaction.”
It noted that Traton has developed a strong strategic relationship with the company in recent years.
“In light of the 23 per cent 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.”
Navistar said it does not intend to make any additional comments regarding the proposal.
As we reported earlier, given Navistar’s indebtedness, its highly leveraged balance sheet and the weak truck market, most analysts believe that the current bid by Traton is a reasonable one and that the US truck maker will not have a better chance to cement its future as part of a global truck making operation.
