Elliott Says Toyota Is Short-Changing Investors By Billions - Toyota Motor (NYSE:TM)

Core Viewpoint - Toyota Motor Corporation's stock experienced an increase as investor focus heightened regarding a contested tender offer involving a significant affiliate, Toyota Industries Corporation, with Elliott Investment Management challenging the revised terms as being too low for minority shareholders [1][2]. Group 1: Tender Offer Details - Toyota Motor raised its buyout offer for Toyota Industries to 18,800 yen ($118.11) per share, up from 16,300 yen announced in June last year, as part of its plan to take the unit private [2]. - Elliott Investment Management criticized the updated offer, asserting that it still undervalues Toyota Industries [2][4]. Group 2: Valuation Concerns - Elliott argued that Toyota Industries possesses strong, profitable units and robust financial holdings, estimating the intrinsic value at over 25,000 yen per share, which reflects recent gains in key holdings [4]. - The investment firm stated that the proposed transaction significantly undervalues Toyota Industries and lacks transparency and proper governance practices [3][4]. Group 3: Market Performance - Elliott noted that the expansion in value is attributed to a roughly 40% rise in Toyota Motor and other Toyota Group equities, which should lead to a higher valuation for Toyota Industries shares [5]. - Toyota Motor's stock has gained over 26% in the past year, with shares trading at a new 52-week high of $234.09, reflecting a 2.73% increase at the time of publication [5][6].