Suzuki's Divorce From VW to Cost It Up to $3.9 Billion
TOKYO - Suzuki says it will buy back the 19.9 percent stake held by top shareholder Volkswagen Group after an international arbitration court last month ordered the German automaker to sell its holding, reports Automotive News.
The Japanese automaker said it would repurchase on Thursday as many as 122.77 million shares at today's closing price of 3,842.50 yen, for up to 471.74 billion yen ($3.9 billion).
Suzuki did not say what it planned to do with the stock.
Rather than pursue other partnerships, Suzuki has been urged to focus on its dominant India operations and Maruti subsidiary by Daniel Loeb, whose hedge fund Third Point holds a stake in the automaker.
Loeb has urged the company to cancel the shares that it repurchases and focus on improving value for existing shareholders.
Suzuki and Volkswagen agreed to tie up in December 2009, pledging to cooperate on technology and on expanding in emerging economies, but the alliance soon faltered. Suzuki filed for arbitration in November 2011.
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