Toyota Nearly Doubles Its Fuji Stake

Article Excerpt

TOYOTA MOTOR CORP. ADRs $100 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $180.0 billion; WSSF Rating: Above average) has expanded its ownership of Fuji Heavy Industries Ltd., from 8.7% to 16.5%. Fuji makes cars and trucks under the Subaru brand. Toyota paid $305.7 million, which is just 7% of the $4.1 billion or $2.59 per ADR it earned in the three months ended December 31, 2007 (each American Depository Receipt represents two Toyota common shares). The two companies will also jointly develop new cars. That will help Toyota reach its goal of expanding sales by 11% in the current fiscal year. The alliance will also give Toyota greater access to Fuji’s automotive engineers and other skilled workers, and improves efficiency in the face of rising prices for raw materials. Toyota is a buy. buy…