Navistar’s stock soars toward 2-year high after Volkswagen’s Traton raises buyout bid by about 23%

/ / News

Shares of Navistar International Corp. soared 16.5% toward a two-year high in morning trading Thursday, after Germany-based Volkswagen AG’s subsidiary Traton SE raised its bid to buy the truck maker by about 23% to $3.6 billion. Traton said it will now pay $43 a share for the Navistar shares it doesn’t already own, up from the bid of $35 a share proposed in January. Traton currently owns 16.8% of Navistar’s shares outstanding. The new bid price represents a 20% premium to Wednesday’s stock closing price of $35.84. Volkswagen confirmed its “general intention” to provide Traton with the funds to finance the increased bid. Navistar’s stock had dropped 2.3% on Wednesday, after reporting a wider-than-expected fiscal third-quarter loss and sales that fell more than forecast. The stock has run up 44.2% year to date, while the S&P 500 has gained 5.9%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.