Volvo, Navistar Said to Be in Merger Talks

Swedish vehicle maker Volvo is reportedly in talks with U.S. truck manufacturer Navistar International Corp. about a possible takeover, the Financial Times reported today.

Senior executives of 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 newspaper said, quoting an unnamed source close to the talks.

The report speculated that the deal could be worth at least $3 billion, but added that the price could be substantially lower if Volvo acquired only Navistar’s heavy truck operations. The discussions may also only lead to an alliance.

Navistar stock was up $2 on Friday to close at $35.25 on the New York Stock Exchange.