Navistar declines Traton’s buyout offer, calls it a starting point

Navistar International on Monday turned down Volkswagen truck unit Traton‘s buyout offer of $43 per share, but said it was a starting point for finding out a possible transaction.

The German automaker has raised its $35 per share January offer as it looks to boost 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 per share.

The company stated Traton’s proposal significantly undervalues it.

The truck sector faces pressure to consolidate and share the expenses of developing low-emission technologies. Traton and Navistar have been working together on purchasing and developing electric vehicle technology.