Toyota Wants To Buy Back Almost 5% of Outstanding Stock

TOKYO, May 13 Reuters reported that Toyota Motor Corp, said today it was seeking shareholder approval to buy back up to 170 million of its own shares or 600 billion yen ($4.7 billion) worth.

The buyback represents up to 4.6 percent of its outstanding shares and will be subject to approval at a meeting of shareholders on June 26.

Toyota said it will then retire 40 million of those shares, or about one percent of shares outstanding.

Buybacks by Toyota have been widely expected as the chances that financial firms may unload their holdings in the automaker have been weighing on its stock.

Cross-holdings -- shares traditionally held to cement business ties -- are now subject to mark-to-market accounting rules and banks are scrambling to cut the vulnerability of their bottom lines to stock market swings as well as cover loan losses. ($1=127.60 yen)