Elliott Hasn't Ruled out Counter Offer as Option for Toyota Industries

By Kosaku Narioka

Elliott Investment Management hasn't ruled out a potential counter proposal for Toyota Industries, according to a person familiar with the matter, as it remains opposed to a revised tender offer from a Toyota group company for the Japanese forklift maker.

The U.S. activist investor has said it opposes the revised tender offer, adding that the deal substantially undervalues the Japanese company and a standalone plan offers a path to a much higher valuation.

Elliott said in a regulatory filing last week that it had raised its stake in Toyota Industries to 6.65% from 5.0% previously.

Elliott may build its stake further, the person familiar with the matter said, adding that a counter tender offer is one of the options on the table.

Japanese daily Nikkei reported earlier that a counter tender offer bid is an option for Elliott.

Earlier this month, a real-estate arm of the Toyota group of companies raised its offer for Toyota Industries to 18,800 yen, equivalent to $123.52, a share from Y16,300 originally and started the tender offer. The new offer valued the company at about $35 billion.

The real-estate arm, Toyota Fudosan, is privately held by Toyota group companies, with Toyota Motor Chairman Akio Toyoda also serving as its chairman.

Elliott has said its analysis showed Toyota Industries' intrinsic net asset value to be more than Y26,000 a share as of Jan. 16 and that a standalone plan offers a clear path to a valuation of more than Y40,000 by 2028.

The activist investor said key elements of the standalone plan included unwinding cross-shareholdings and ceasing overinvestment in the automotive segment. Elliott said Toyota Industries ran market-leading businesses and held valuable stakes in publicly traded companies.

Shares of Toyota Industries closed 1.2% higher at Y19,585 on Wednesday. They were below Y13,000 in mid-April, before the company said it received various proposals, including one to take the business private.

Toyota Industries, from which Toyota Motor was spun off in 1937, produces forklifts, cars, engines, other auto parts and textile machinery. It was founded by Sakichi Toyoda, Akio Toyoda's great-grandfather.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

January 28, 2026 12:49 ET (17:49 GMT)