Shares of Sumitomo Realty & Development Co (TYO:8830) surged to a record high on Tuesday after a Bloomberg report said Elliott Investment Management has approached several Japanese companies about buying their holdings in the real estate developer.
The U.S. activist fund has contacted firms that own small cross-shareholdings in Sumitomo Realty, offering to purchase their stakes in block trades at around market prices, Bloomberg reported on Monday, citing people familiar with the matter.
The companies approached collectively hold no more than 5% of Sumitomo Realty’s shares, the report said.
Tokyo-listed Sumitomo Realty’s stock jumped as much as 6.4% to a record high of 7,315 yen on Tuesday.
Elliott, which held more than 3% of Sumitomo Realty as of June, has been pushing the developer to accelerate asset sales and unwind its ¥400 billion in cross-shareholdings. The firm has criticized Sumitomo’s planned 10-year divestment schedule as lacking urgency, the report added.
Source :
https://www.investing.com/news/stock-market-news/sumitomo-realty-shares-hit-record-high-on-report-elliott-seeks-bigger-stake-4274075
