Elliott rejects Toyota Industries tender, shares hit record

Activist investor Elliott Investment Management has again urged shareholders to reject a takeover bid for Toyota Industries, as the company’s shares surged to a record high.

Elliott said it will not tender its shares under the current offer terms and encouraged other investors to do the same. The fund also called on shareholders who have already agreed to tender their shares to withdraw them, News.Az reports, citing Reuters.

The dispute centers on a bid by a group of Toyota Motor-affiliated companies seeking to take Toyota Industries private. Elliott, one of the most outspoken critics of the deal, argues the offer undervalues the company and harms minority shareholders.

The consortium initially offered 16,300 yen per share before raising the bid to 18,800 yen in January. As of shortly before the original deadline on Thursday, about 33.1% of shares had been tendered.

For the deal to succeed, at least 42.01% of minority shareholders must accept the offer, excluding Toyota Motor’s existing 24.66% stake.

Toyota Industries shares climbed sharply after the tender offer deadline was extended. On Friday morning, the stock was trading near a record high of around 20,355 yen per share, signaling market expectations of either a higher offer or continued deal uncertainty.

News.Az 

By Aysel Mammadzada