Toyota Motor Corporation (NYSE:TM) stock rose on Thursday as investor scrutiny intensified over a contested tender offer involving a major affiliate of the company.
Elliott Investment Management publicly challenged the revised terms, calling the price too low for minority holders.
Toyota Motor said late Wednesday it had raised the buyout offer for the group company to 18,800 yen ($118.11) per share, up from 16,300 yen announced in June last year, as it moves forward with plans to take the unit private, CNBC reported.
Elliott Investment Management L.P. and Elliott Advisors (UK) have criticized the updated offer for Toyota Industries Corporation.
Elliott said the revised tender offer price still undervalues Toyota Industries.
Previously on November 11, 2025, Elliott said, “the proposed transaction very significantly undervalues Toyota Industries and reflects a process that has lacked transparency and has fallen short of proper governance practices.”
The investment firm said that the company's assets are worth far more than the proposed figure.
Valuation Dispute
Elliott argued that Toyota Industries owns strong, profitable units alongside robust financial holdings.
Based on its analysis, the firm estimated intrinsic value at above 25,000 yen per share, reflecting recent gains in key holdings.
The activist investor group said it does not plan to tender its holdings under the current structure.
It also encouraged other minority shareholders to reject the transaction as currently framed.
Elliott believes the expansion in value stems from a roughly 40% rise in Toyota Motor and other Toyota Group equities.
That appreciation in underlying stock prices, the group said, should drive a higher valuation for Toyota Industries shares.
According to Benzinga Pro, Toyota Motor stock has gained over 26% in the past year.
Investors can gain exposure to the stock via Toyota Motor Corporation ADRhedged (NYSE:TMH).
TM Price Action: Toyota Motor shares were up 2.73% at $234.09 at the time of publication on Thursday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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