Japan's Mitsui OSK shares soar to record highs as activist investor Elliott builds 'significant' stake
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Shares of Japanese shipping firm Mitsui OSK surged to a record high after Elliott Investment Management said it had established a "significant" stake.
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Shares of Japanese shipping firm Mitsui OSK Lines surged more than 11% Wednesday to a record high after activist investor Elliott Investment Management said it had established a "significant" stake in the firm . Elliott said it was confident in the Japanese shipping company's long track record and position as one of the world's largest diversified oceangoing vessel owners. "Despite this strong market position and high-quality assets, the market materially undervalues the business," the investment firm said in its statement, adding that it sees an opportunity to engage constructively with Mitsui's management to ensure its upcoming medium-term plan is sufficiently ambitious, improve market perception and unlock a higher valuation. Mitsui OSK reported slightly higher revenue for in its latest results, but sharply lower profit, reflecting weaker earnings across key shipping segments. Revenue for the nine months ended December rose 2% year on year to 1.35 trillion yen ($8.49 billion), but operating profit fell over 16% to 102.7 billion yen. The decline was driven by weaker profitability across several core businesses, particularly product transport and containerships, where profits fell sharply amid softer freight rates and rising vessel supply. The shipper's stock is up over 48% year to date. Elliott Investment Management manages about $79.8 billion in assets. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Subscribe to CNBC PRO Subscribe to Investing Club Licensing & Reprints CNBC Councils Select Personal Finance Join the CNBC Panel Closed Captioning Digital Products News Releases Internships Corrections About CNBC Site Map Podcasts Careers Help Contact News Tips Got a confidential news tip? We want to hear from you. Get In Touch CNBC Newsletters Sign up for free newsletters and get more CNBC delivered to your inbox Sign Up Now Get this delivered to your inbox, and more info about our products and serv...
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