U.S. activist investor Elliott Management has offered to purchase shares in Toyota Industries at around the current market price from investors who have already agreed to support a take-private bid by the Toyota group, according to two sources familiar with the matter.
The move marks a fresh attempt by Elliott to derail what it argues is an undervalued offer for the forklift truck maker. The hedge fund has approached shareholders including suppliers and financial institutions that had backed the tender offer, the sources said, speaking on condition of anonymity because the discussions are private.
Reuters is reporting details of Elliott’s proposal for the first time. Both Elliott and Toyota declined to comment.
Toyota Industries’ shares closed at 20,200 yen ($130) on Friday, about 7% above the 18,800 yen per share offered by Toyota when it announced the buyout plan in June. Earlier this month, Toyota extended the tender offer period after failing to secure sufficient shareholder backing.
Elliott has publicly argued that Toyota Industries is worth more than 26,000 yen per share. Regulatory filings from early February show the activist investor owns roughly 7% of the company and must disclose any change of 1% or more in its stake.
Toyota raised its offer price in January, saying the revised bid reflects the company’s intrinsic value and that it does not intend to increase it further.
As of mid-February, Toyota still needed an additional 9% of shareholder support to reach the two-thirds majority required to complete the buyout and take full control.
Among shareholders that have agreed to sell are Ibiden, Mitsui Sumitomo Insurance, and Tokio Marine & Nichido Fire Insurance, according to January filings.
Ibiden has previously said that reducing cross-shareholdings — a longstanding feature of Japan’s corporate structure — would enhance its corporate value and benefit shareholders.
The proposed deal is widely viewed as a test case for corporate governance reform in Japan, where regulators have been urging companies to unwind cross-shareholding arrangements and improve capital efficiency.
If Elliott succeeds in persuading investors to reconsider, it could significantly weaken support for Toyota’s buyout plan and complicate efforts to reshape the broader Toyota group.