Volkswagen: makes announcement on Navistar

(CercleFinance.com) - The Volkswagen share first fell on Friday, before then picking up (+0.
27% at 10.30 am), after its announcement about Navistar.

Volkswagen's trucks division yesterday announced that it had made an unsolicited offer to buy the remaining capital of its American partner Navistar. The group has held 16.8% of its capital since 2017.

This offer, at a unit price of 35 dollars, representing a 45% premium over the previous day's price (although 19%/20% on the 3 month VWAP), represents a total of 2.9 billion dollars (2.6 billion euros) in cash, Oddo says.

Following this announcement, the brokerconfirms its buy rating on the share with a target of 190 euros.

Oddo believes that the acquisition of Navistar will enable it to reposition itself in relation to world leaders such as Daimler Trucks and Volvo Trucks and to rebalance its geographic mix, dominated by Europe and Latin America.


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