Navistar’s stock soars after company said it’s ready to accept Traton’s higher buyout bid

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Shares of Navistar International Corp. soared 22.9% on heavy volume in afternoon trading Friday, after the commercial trucks and diesel engines maker said it is prepared to accept Germany-based Volkswagen AG subsidiary Traton SE’s higher buyout bid of $44.50 a share in cash. Trading volume was 14.9 million shares, well above the full-day average of about 1.8 million shares. The company said Traton’s buyout bid has the support of its two other largest shareholders, Icahn Associates and MHR Fund Management. The stock has now retraced about 90% of what it lost over the previous two days. The stock had declined 1.6% on Thursday, and plunging 19.0% on Wednesday, after Navistar disclosed on Wednesday that Traton said its Sept. 10 bid of $43.00 a share was its “best and final offer” and would expire on Friday evening. Navistar’s stock has run up 50.5% year to date, while Volkswagen’s U.S.-listed shares have shed 10.6% and the S&P 500 has gained 8.5%.
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