Traton has offered to acquire Navistar Internation for $43 per share, Navistar says, and its board agreed to explore the deal.
In a statement, the board acknowledges that the offer is 23 percent higher than previous bids, and—although it “significantly undervalues the company and substantial synergies from a combination”—will consider the deal via due diligence and further discussion with its advisors.
Navistar does not intend to make any additional comments regarding the proposal, its engagement with Traton, or the due diligence process unless and until it is appropriate to do so, or a formal agreement has been reached, the board said.
The board said Navistar shareholders need not take any action at this time, nor is there any assurance that any transaction with Traton will occur or be consummated.
JP Morgan and PJT Partners are acting as Navistar's financial advisors. Sullivan and Cromwell is providing legal counsel. Brunswick is providing communication counsel.
Source: Navistar
