Elliott Management Rejects Toyota Industries Group Buyout Bid

Elliott Investment Management opposes a proposed ¥6.1 trillion ($39 billion) privatization of Toyota Industries, urging other minority shareholders to resist the bid and arguing it could achieve greater value on its own. The company has an intrinsic net asset value of ¥26,000 per share, the U.S. activist fund said in a letter published Monday. That’s much higher than the Toyota group’s higher revised offer of ¥18,800 per share, which failed to stifle the debate over Toyota Industries’ valuation even after its tender period began last week. As Elliott escalates its campaign to push Japan’s largest business group for a sweeter deal, the standoff puts a spotlight on whether take-private deals by founding families offer fair value to minority shareholders. The outcome could shape how aggressively investors push back against similar transactions going forward.