Elliott Management targets Japan's biggest property group Mitsui Fudosan -FT (updated)

Mitsui Fudosan Co

05/02/2024 04:26

(Updates with Mitsui Fudosan's share reaction, Elliott's
reaction)
       Feb 5 (Reuters) - U.S. activist fund Elliott Management
has called on Japan's biggest property group Mitsui Fudosan
 8801.T  to launch a 1 trillion yen ($6.74 billion) buyback, the
Financial Times reported on Monday.
    Elliott's demands include the company sell down its $3.6
billion stake in Oriental Land  4661.T , which runs Tokyo
Disneyland, the report said, citing people close to the fund and
Mitsui Fudosan.
    Elliott's spokesperson declined to comment. Mitsui Fudosan
officials did not have an immediate comment. 
    Mitsui Fudosan's shares were up more than 7% by early
afternoon trade, having jumped nearly 12% earlier in the day.
        Elliott's reported move comes as Japanese companies face
increasing pressure to improve their market valuations and
increase their returns on equity.
        Nearly half of the companies on the Tokyo Stock
Exchange's prime section have responded to a call to disclose
plans to improve capital efficiency, the bourse said last month.
        Optimism over improved investor returns had also helped
propel the Tokyo market to its highest level in more than three
decades last year. 
    ($1 = 148.4600 yen)

 (Reporting by Disha Mishra in Bengaluru and Mariko Katsumura in
Tokyo; Editing by Savio D'Souza and Jamie Freed)
 ((Disha.Mishra@thomsonreuters.com;))