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Suzuki Plans $1.8 Billion Bond Sale, Cancels Most VW Shares

  • Convertible bond sale to help fund first India factory
  • Third Point's Loeb urged Suzuki to cancel stock bought from VW
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Suzuki Motor Corp. plans to sell 200 billion yen ($1.8 billion) of convertible bonds and cancel most of the stock it bought back from Volkswagen AG last year, as the Japanese automaker expands in India following a failed alliance.

Suzuki will sell the bonds primarily to fund the 185 billion rupee ($2.8 billion) factory it’s building in India’s western Gujarat state, according to a statement filed Monday to the Tokyo stock exchange. The automaker also will cancel 70 million treasury shares, or 12.5 percent of outstanding stock, to boost returns for investors after ending its partnership with Volkswagen in September, the company said in separate statement.