Toyota Industries shares poised to surge on potential buyout

TOKYO (Reuters) -Shares of Toyota Industries (OTC:TYIDF) were set to surge on Monday after Japanese automaker Toyota (NYSE:TM) said over the weekend it was exploring the possibility of investing in a potential buyout of the key parts supplier.

Toyota Industries shares remained untraded with a glut of buy orders on Monday. The bid and ask indicated that their price was poised to hit the daily upper limit of 16,225 yen, a 23% jump on Friday’s closing price of 13,225 yen.

Such a rise would mark the stock’s biggest one-day jump in at least more than 40 years, according to LSEG data going back to early 1984.

On Saturday, Toyota said in a filing with the Tokyo stock exchange it was exploring various possibilities, including a partial investment, in Toyota Industries.

Bloomberg News reported on Friday that Toyota Chairman Akio Toyoda and his founding family have proposed acquiring Toyota Industries in a potential 6 trillion yen ($42 billion) deal.

In a statement released Saturday, Toyota Industries confirmed it had received proposals about going private through a special purpose company but it denied receiving a buyout offer from the Toyota chairman or the Toyota group.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.TM: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if TM is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

Unlock ProPicks AI now