Toyota has extended the tender period for its $35 billion bid to privatize a key subsidiary, signaling the Japanese automaker needs more time to secure shareholder backing. The move comes as Elliott Investment Management mounts an aggressive campaign to block the deal, creating uncertainty around the transaction.

The extension suggests Toyota faces challenges rallying investor support for the privatization plan. Elliott, known for its activist approach, has been vocal in opposing the deal, arguing it undervalues the subsidiary. The hedge fund's resistance has complicated Toyota's efforts to gain the necessary shareholder approval for the transaction.

This development highlights the growing influence of activist investors in corporate Japan. Toyota's decision to delay the deadline reflects the pressure from Elliott's campaign and the need to address shareholder concerns. The outcome of this battle could set a precedent for future privatization attempts in Japan's corporate landscape.