Elliott Rejects Toyota Industries Bid, Urges Investors to Resist

Core Viewpoint - Elliott Investment Management has rejected Toyota's increased bid to privatize Toyota Industries, urging other shareholders to oppose the offer and seek a better price [1][2]. Group 1: Bid Details - Toyota raised its offer to ¥18,800 per share ($118.50), reflecting a 15% increase from the previous bid [1]. - Despite the increase, Toyota Industries' stock rose to ¥19,255, indicating investor demand for a higher premium [1]. - Elliott claims the new offer still undervalues Toyota Industries, asserting the company is worth over ¥25,000 per share [2]. Group 2: Shareholder Reactions - Elliott has stated it will not tender its shares under the current terms and will encourage other shareholders to reject the tender offer [2]. - Hugh Sloane from Sloane Robinson, a UK-based fund, supports the valuation of ¥25,000 per share, criticizing Toyota's acquisition strategy as undervalued [3]. Group 3: Tender Offer Process - The tender offer commenced on Thursday and will continue until February 12, with potential implications for future corporate buyouts in Japan [3]. - The offering was initially scheduled for December but was delayed due to antitrust regulatory approvals [4]. Group 4: Historical Context - The initial take-private bid by Toyota was valued at approximately ¥4.7 trillion, representing an 11% discount to its market capitalization [5]. - Critics have called for greater transparency regarding the deal, which could enhance the founding family's influence over Toyota [5].