Volkswagen Unit Considering Full Takeover of Truck Maker Navistar -- Update
April 16 2018 - 7:49AM
Dow Jones News
By William Boston
Volkswagen AG's commercial-vehicles unit said it is considering
a full takeover of Navistar International Corp., an Illinois-based
truck maker valued at about $3.66 billion -- an ambitious move for
the German auto maker just days after naming a new chief
executive.
Volkswagen's commercial truck unit already owns a stake just shy
of 17%. Officials at Volkswagen Truck & Bus GmbH said Monday it
could raise that stake, and was also considering a full
takeover.
Volkswagen elevated Herbert Diess to the top job last week,
replacing Matthias Müller in an unexpected CEO shuffle. Following
the appointment of Mr. Diess, Volkswagen outlined a broad
restructuring plan, including the possible partial listing of its
truck business.
"We are now very close to 17%" owners of Navistar, executive
Matthias Gründler told reporters Monday. He said the Volkswagen
truck unit could use proceeds from its potential listing next year
to make a full offer for the U.S. truck maker.
Under U.S. securities law, VW Trucks would be required to make
an offer for the rest of Navistar's shares if it acquires more than
17% of the company, Mr. Gründler said. VW Trucks now holds 16.9% of
Navistar.
The comments were made during a briefing with reporters about
the company's development and plans as it prepares for a potential
listing next year.
Write to William Boston at william.boston@wsj.com
(END) Dow Jones Newswires
April 16, 2018 07:34 ET (11:34 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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