By Colin Kellaher
Navistar International Corp. on Friday said it is willing to be acquired by Volkswagen AG's Traton SE unit, but at a higher price than the offer currently on the table.
The Lisle, Ill., maker of trucks and buses said it is prepared to move forward with a transaction in which Traton would pay $44.50 a share in cash, which would value Navistar at roughly $4.43 billion.
Traton, which already owns a 16.7% stake in Navistar, is currently offering $43 a share, up from an initial bid of $35. The company earlier this week said its proposal would expire Friday unless it Navistar indicated a willingness to engage.
Navistar said that following talks with Traton, its board asked the German truck maker to confirm that a price of $44.50 a share is a basis for a definitive agreements, adding that a deal at that price has the support of two of its largest shareholders, including billionaire investor Carl Icahn, who owns a 16.8% stake, and MHR Fund Management, with a 16.3% interest, according to data from FactSet.
Shares of Navistar were recently up 20.9% to $42.83, while Traton shares gained 1.1% to EUR17.93.
Write to Colin Kellaher at firstname.lastname@example.org
(END) Dow Jones Newswires