Report: Volvo in Talks With Navistar
Senior executives from Volvo, which agreed last month to sell its automobile division to Ford Motor Co., have met with officials from Chicago-based Navistar to discuss a buyout offer, the Financial Times reports in today's editions. The newspaper quotes an unnamed source close to the talks.
The report speculated the deal could be worth at least $3 billion but added the price could be substantially lower if Volvo acquired only Navistar's heavy truck operations. The discussions may also only lead to some kind of alliance.
A takeover would more than double Volvo's share of the North American truck market, the report said.
avistar International, the United States' third-largest heavy truck manufacturer, also makes medium-sized trucks and school buses, and builds diesel engines. It exports trucks and parts to more than 80 dealers in 75 countries and sells its merchandise through about 1,000 dealers in North America.
Navistar's market value is about $2.3 billion, based on Friday's closing stock price of $35.25 on the New York Stock Exchange.
oy Wiley, a spokesman at Navistar's Chicago headquarters, declined to comment Monday, saying, "It's our policy not to comment on speculation or rumor." Wiley said he did not anticipate any announcements in the near future.
Besides its well-known car division, Volvo also makes trucks, buses, construction equipment and marine and aviation engines. The proposed sale of Volvo's car division to Ford for $6.45 billion is aimed at giving Volvo the resources to concentrate on developing its other divisions.
Volvo last month surprised markets by acquiring 13 percent of the stock in rival Swedish truck-maker Scania and is making an effort to buy the company. If successful, Volvo would be Europe's largest truck manufacturer.
