Daikin Shares Climb 14% After Activist Elliott Takes Stake

Daikin Industries Ltd. shares posted their highest gain since 2009 after Elliott Investment Management took a stake in Japanese air-conditioner manufacturer, saying that it is “materially undervalued” by the market.

The stock rose as much as 14% in early morning trading in Tokyo on Thursday after the activist investor disclosed that it had taken a significant position in Daikin and called for efforts to boost profitability, improve shareholder returns and review its non-core businesses. “We are committed to working constructively with the company,” Elliott said.