Loeb Fund Buys Suzuki Stake as End to VW ‘Paralysis’ Seen
This article is for subscribers only.
Suzuki Motor Corp. rose to a record in Tokyo trading after the hedge fund run by Daniel Loeb said it had acquired a stake in the carmaker, predicting a positive end to a years-long dispute with Volkswagen AG.
An almost five-year arbitration between Suzuki and Volkswagen has “paralyzed” the Japanese company, with a resolution in sight, Loeb’s Third Point LLC said in a letter to investors dated July 31. Its Maruti Suzuki India Ltd. unit also enjoys a “sustainable scale-based advantage” over its competitors and has “significant room” to expand its profit margins, the New York-based fund said.