Exclusive: Elliott woos shareholders backing Toyota Industries buyout, sources say

Core Viewpoint - Elliott Management is attempting to acquire shares of Toyota Industries, claiming the current tender offer undervalues the company, which could disrupt Toyota's buyout plans and impact corporate governance in Japan [1]. Group 1: Elliott Management's Offer - Elliott Management has proposed to buy Toyota Industries shares at around market price from shareholders who support the tender offer [1]. - The firm believes that Toyota Industries shares are worth more than 26,000 yen each, significantly higher than the 18,800 yen proposed by Toyota [1]. - Elliott currently holds approximately 7% of Toyota Industries and must report any changes in its holdings [1]. Group 2: Toyota Industries' Buyout Attempt - Toyota Industries' share price closed at 20,200 yen ($130), which is about 7% above the proposed buyout price [1]. - The company extended its tender offer due to insufficient shareholder support and needs 9% of shareholders to agree to sell for a two-thirds majority [1]. - Shareholders who have agreed to sell include notable firms like Ibiden, Mitsui Sumitomo Insurance, and Tokio Marine & Nichido Fire Insurance [1]. Group 3: Implications for Corporate Governance - The situation is viewed as a test case for corporate governance in Japan, where regulators are encouraging companies to improve capital efficiency and reduce cross-shareholding arrangements [1]. - Ibiden has indicated that selling its Toyota Industries stock will enhance its corporate value and benefit its shareholders [1].