Navistar International (NAV) - Get Report shares soared Thursday after the truck maker announced that Traton, the truck and bus division of Volkswagen, raised its bid for Navistar to $3.6 billion, or $43 a share, in cash, higher than the $2.9 billion, or $35 a share, in January.
Navistar said its board will “carefully review the revised proposal.” Traton currently holds 16.8% of Navistar’s outstanding common stock.
Navistar shares recently traded at $41.45, up 15.65%. The stock has jumped 43% year to date, with most of the gain coming this month.
“We continue to believe in the compelling strategic benefits that a complete merger of Traton and Navistar would produce,” Traton CEO Matthias Grundler said in a statement. “This is why we are re-emphasizing our interest in the transaction in spite of the Covid-19 pandemic.”
On Wednesday, Navistar reported that revenue for the 2020 fiscal third quarter ended July 31, totaled $1.7 billion, down 45% from the year-ago quarter.
“The decrease was primarily driven by the impact of Covid-19, as well as prior year comparable quarter results that were near the peak of the prior industry cycle,” the company said.
"Our fiscal third quarter opened during the middle of many stay-at-home orders and ended with sections of the economy beginning to reopen, and our results certainly reflect this," said Navistar CEO Persio Lisboa.
"While marketplace uncertainties continue, we are accelerating the pace of progress on our Navistar 4.0 strategy for financial improvement, so we can pull forward its benefits and take full advantage of a stronger industry when it arrives."