(Reuters) – Navistar International CorpNAV.Non Monday rejected VolkswagenVOWG_p.DEtruck unit Traton’s8TRA.DEbuyout 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.
Reporting by Rachit Vats in Bengaluru; Editing by Vinay Dwivedi