Elliott Challenges Toyota's $27.8B Bid in High-Stakes Corporate Showdown
A high-stakes battle is unfolding in Japan as Elliott Investment Management fights Toyota's planned $27.8 billion takeover of its subsidiary, Toyota Industries. The US activist fund, holding a 6.7% stake, argues the offer undervalues the company by nearly 40% and is pushing for a higher price.
The dispute has drawn wider attention, with other investors criticising Toyota's bid. The outcome could reshape corporate governance in Japan and test the strength of its traditional stakeholder model.
Toyota initially offered ¥16,300 per share for full control of Toyota Industries. After backlash, it raised the bid by 15%, but Elliott dismissed even the revised ¥18,800 per share as too low. The fund insists a fair price would start at ¥26,000—well above the current market value.
Elliott needs 33% of voting rights to block the deal. With its own 6.7% and an estimated 19% held by passive investors like BlackRock, it is already close to the threshold. Analysts suggest these large holders are unlikely to accept a price below market value, making Elliott's push more plausible.
Support for Elliott's stance has grown. Asset Value Investors and others have publicly criticised the offer, reinforcing the argument that Toyota's bid falls short. The tender period remains open until February 12, leaving time for further shifts in shareholder positions.
The fight over Toyota Industries marks a rare challenge to Japan's corporate establishment. If Elliott succeeds in blocking the deal, it could embolden activist investors in future disputes. The final decision will also signal whether Japan's long-standing stakeholder model can withstand pressure from global shareholder demands.
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