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Navistar Board Says Traton's Revised Offer Significantly Undervalues Firm

Truck maker Navistar International Corp. (NAV) Monday said its Board has concluded that the revised proposal from Traton SE, a subsidiary of Volkswagen Group (VKW.L,VLKAF.PK,VOW.BE), significantly undervalues the company and substantial synergies from a combination.

However, the revised proposal of $43.00 per share does represent a starting point for further exploring the possibility of a transaction.

In pre-market activity on NYSE, Navistar shares were gaining percent at $42.40.

In a statement, Navistar noted that, in light of the 23% increase in Traton's proposal, the best way for Traton to appreciate the true value of a potential combination is to allow it to conduct due diligence and engage in further synergy discussions with the company.

Navistar said it does not intend to make any additional comments regarding the proposal, its engagement with TRATON, or the due diligence process unless and until it is appropriate to do so, or a formal agreement has been reached.

JP Morgan and PJT Partners are acting as Navistar's financial advisors. Sullivan and Cromwell is providing legal counsel.

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