Toyota concerned it might be acquired?
06-08-2005, 10:14 AM
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Toyota concerned it might be acquired?
Toyota Motor to boost takeover defenses, report says - - Reuters / June 08, 2005 - - Source: Automotive News
TOKYO -- Toyota Motor Corp. will boost its takeover defenses by increasing to more than 50 percent the stake its group firms hold in its major shareholder Toyota Industries Corp., the Asahi newspaper said on Wednesday.
The company aims to fix the share ownership structure of the group to block a possible attempt by a hostile bidder to take over Toyota Industries in order to gain access to the world's second-biggest automaker, the paper said.
Group companies, including Toyota Motor, Denso Corp. and Toyota Tsusho Corp., currently have about 45 percent of Toyota Industries. The automaker itself, which holds 23.5 percent of Toyota Industries, does not plan to raise its stake in the company, the paper said.
A Toyota spokeswoman said the company was studying various options, including poison pills, but no specific decision had been made.
Speculation has been rife that Toyota Industries, the 80-year-old textile-machinery maker from which Toyota Motor was spun off, could be targeted for a takeover as a cheap way to acquire a significant stake in the profitable automaker. Toyota Industries holds a 5.5 percent stake in Toyota Motor.
At Wednesday's closing share price of 2,835 yen, Toyota Industries' price-to-book ratio stands at around 0.8. Companies with ratios below 1.0 are generally considered prime targets for takeovers.
President Fujio Cho told Reuters recently that Toyota, along with its group companies, was considering various defense strategies but that it would take some time to reach a final decision.
The move comes as many Japanese companies set up plans to block unwanted takeover attempts following a series of takeover battles, including a high-profile one involving Fuji Television Network Inc., Nippon Broadcasting System Inc. and Livedoor Co.
The company aims to fix the share ownership structure of the group to block a possible attempt by a hostile bidder to take over Toyota Industries in order to gain access to the world's second-biggest automaker, the paper said.
Group companies, including Toyota Motor, Denso Corp. and Toyota Tsusho Corp., currently have about 45 percent of Toyota Industries. The automaker itself, which holds 23.5 percent of Toyota Industries, does not plan to raise its stake in the company, the paper said.
A Toyota spokeswoman said the company was studying various options, including poison pills, but no specific decision had been made.
Speculation has been rife that Toyota Industries, the 80-year-old textile-machinery maker from which Toyota Motor was spun off, could be targeted for a takeover as a cheap way to acquire a significant stake in the profitable automaker. Toyota Industries holds a 5.5 percent stake in Toyota Motor.
At Wednesday's closing share price of 2,835 yen, Toyota Industries' price-to-book ratio stands at around 0.8. Companies with ratios below 1.0 are generally considered prime targets for takeovers.
President Fujio Cho told Reuters recently that Toyota, along with its group companies, was considering various defense strategies but that it would take some time to reach a final decision.
The move comes as many Japanese companies set up plans to block unwanted takeover attempts following a series of takeover battles, including a high-profile one involving Fuji Television Network Inc., Nippon Broadcasting System Inc. and Livedoor Co.
If only I had the money...
06-08-2005, 10:53 AM
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Suzuka Master
Originally Posted by gavriil
Who would be interested in...taking over Toyota?
Even though GM has a junk rating on its debt an LBO would still make sense.
06-08-2005, 11:20 AM
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Originally Posted by SpeedyV6
I don't think Japanese shareholders would ever approve (or regulators for that matter) of it but if GM used its all of its liquidity and went deeply into debt acquiring Toyota would be a smart thing to do. It would literally transform the competitve landscape almost overnight and greatly shore up GM's pricing power and profit margins on its line of vehicles by eliminating a major source of competition. Plus it would allow GM to eventually sell Toyota built cars through its distribution chain of dealerships.
Even though GM has a junk rating on its debt an LBO would still make sense.
Even though GM has a junk rating on its debt an LBO would still make sense.
I'm going to pretend you didn't say that
06-08-2005, 12:20 PM
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Trending Topics
06-08-2005, 01:15 PM
#9
Chloe @ 17mo
Originally Posted by Zapata
not by a domestic but by another japanese company. They are huge conglomerates that do everything, a al, mitsubishi.
06-08-2005, 01:17 PM
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Cost Drivers!!!!
Originally Posted by AsianRage
FUJI Heavy Industries?
that's one of them
but i've fallen behind on the news from japan. I doubt them bceause the already have a stake in subaru.
06-08-2005, 06:12 PM
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Originally Posted by SpeedyV6
I don't think Japanese shareholders would ever approve (or regulators for that matter) of it but if GM used its all of its liquidity and went deeply into debt acquiring Toyota would be a smart thing to do. It would literally transform the competitve landscape almost overnight and greatly shore up GM's pricing power and profit margins on its line of vehicles by eliminating a major source of competition. Plus it would allow GM to eventually sell Toyota built cars through its distribution chain of dealerships.
Even though GM has a junk rating on its debt an LBO would still make sense.
Even though GM has a junk rating on its debt an LBO would still make sense.
06-08-2005, 08:32 PM
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Originally Posted by gavriil
Who would be interested in...taking over Toyota?
06-09-2005, 05:24 AM
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IIRC, GM owns 20% of Fuji Heavy Industries. 
06-10-2005, 03:22 PM
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A Toyota spokeswoman said the company was studying various options, including poison pills, but no specific decision had been made.
06-10-2005, 03:50 PM
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Poison pill
Anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.
Anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.
06-10-2005, 04:19 PM
#18
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Originally Posted by gavriil
Poison pill
Anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.
Anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the firm or shares of anyone who acquires the firm at a deep discount to their fair market value. Named after the cyanide pill that secret government agents are said to be instructed to swallow if capture is imminent.
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