Toyota paying about $300 million to boost stake in Subaru car maker to nearly 17 percent

Fuji Heavy Industries Ltd. said Friday it plans to sell 61 million shares to Toyota Motor Corp., raising the Japanese automaker's stake in the maker of Subaru cars to nearly 17 percent.

Fuji Heavy said in a statement it will sell shares worth 31.1 billion yen (US$293 million) to Toyota, Japan's largest automaker.

Toyota, already Fuji Heavy's top shareholder, will raise its stake in the company to 16.61 percent from the current 9.50 percent. Toyota's payment is expected to be completed by July 14.

U.S. automaker General Motors Corp. used to be the top shareholder in Fuji, but sold its entire 20 percent stake in 2005 as part of its efforts to raise cash.

Toyota, on track to beat GM as the world's biggest automaker, bought an 8.7 percent stake in Fuji for about US$315 million to become the top shareholder.

The latest move is symbolic of a global industry shift as cash-rich Toyota takes over what GM has abandoned.

In 2006, Toyota also bought a significant stake in another GM's former Japanese alliance partner _ truckmaker Isuzu.

Toyota had announced its intention to raise its stake in Subaru earlier this year.