Is IH Selling Out?

["Brad N" <ih_binders@domain.elided>]

Hello Binders,


   Was check the IH stock this evening when I noticed a write up that IH 
- Nav. was looking at possibly selling there line of tucks to Volvo.  
Since volvo sold there small vehicle business to Ford recently for 
something like 6.4 Billion.  Here is the stock write up.  Tell me what 
you think on this article?  Will this change the possible (area 51 IH 
development site) for a 1 ton pu if the rumors are true?

Navistar shrs up on Volvo talk; doubts on Wall St


CHICAGO, Feb 8 (Reuters) - Shares of Navistar International Corp. (NAV), 
the leading North American producer
of heavy and medium trucks and school buses, closed up more than 8 
percent on Monday, amid speculation that
Swedish auto maker AB Volvo (VOLVb) might want to buy the company.
      Navistar shares closed up 2-11/16 at 35-5/8 on the New York Stock 
Exchange.
      The latest round of speculation began after Volvo made the 
decision last month to sell its car business to
Ford Motor Co. (F) for $6.45 billion.
      But while saying Navistar could make a good strategic fit for 
Volvo, analysts questioned whether a deal
would get done.
      "It's a difficult businesses to buy," said Eli Lustgarten, an 
analyst at Schroder & Co. Inc., noting the large
amount of net operating loss carryforwards Navistar has on its books.
      That $1.5 billion in net operating losses can be used by Navistar 
to cut income tax payments in the future. But
an acquiring company would be limited in how much of the losses it could 
use, Lustgarten noted.
      Navistar, which is a market leader in the United States, has 
little overlap with Volvo in Europe, thus making it
a potentially good fit.
      Navistar has a major labor contract with the United Auto Workers 
union that expires in November, noted Lisa
Shalett, an analyst at Sanford Bernstein. She added that a buyer might 
not want to get involved with negotiations
at this point.
      Navistar "makes a whole lot of strategic sense" for Volvo, she 
said. But aside from the other roadblocks,
Volvo's sights may be set elsewhere, Shalett said.
      On Monday, Volvo said it has held talks about acquiring local 
rival Scania AB (SCVb) with Scania's biggest
shareholder, Investor AB (INVEb).
      A Navistar spokesman said the company did not comment on rumors 
and speculation.


Brad Norman
La Mirada, CA
71 1210 Travelall 4x4

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