*

Toyota Industries ( TYIDF ) shares set for biggest daily jump on

record

*

Co denies receiving buyout offer from Toyota ( TM ) chairman or

group

*

Co makes RAV4 SUVs for Toyota ( TM ), forklifts

(Adds market value, background on Toyota Industries ( TYIDF ) in

paragraphs 1, 7-12)

TOKYO, April 28 (Reuters) - Shares of Toyota Industries ( TYIDF )

were set for their biggest daily jump on record on

Monday after Japanese automaker Toyota ( TM ) said it was

considering a potential buyout of the key parts supplier, which

has a market value of 4 trillion yen ($28 billion).

Toyota Industries ( TYIDF ) shares remained untraded with a glut of

buy orders on Monday. The bid and ask indicated that their price

was poised to hit the daily upper limit of 16,225 yen, a 23%

jump on Friday's closing price of 13,225 yen. Reuters has

calculated the market capitalisation based on the close.

Such a rise would mark the stock's biggest one-day jump in

at least four decades, according to LSEG data going back to

early 1984.

On Saturday, Toyota ( TM ) said in a filing with the Tokyo stock

exchange it was exploring various possibilities, including a

partial investment in Toyota Industries ( TYIDF ).

Bloomberg News reported on Friday that Toyota ( TM ) Chairman Akio

Toyoda and his founding family have proposed acquiring Toyota

Industries ( TYIDF ) in a potential 6 trillion yen deal.

In a statement on Saturday, Toyota Industries ( TYIDF ) confirmed it

had received proposals about going private through a special

purpose company but it denied receiving a buyout offer from the

Toyota ( TM ) chairman or the Toyota ( TM ) group.

The possible buyout comes as Japanese companies have faced

increasing pressure in recent years to unwind their

cross-shareholdings in affiliates and business partners, which

in many cases have been held over the long term.

Toyota ( TM ) owned about 24% of Toyota Industries ( TYIDF ) as of September

last year, while Toyota Industries ( TYIDF ) held just over 9% of the

world's biggest automaker and more than 5% of Denso ( DNZOF ),

another key Toyota ( TM ) supplier.

In an April 23 report, analysts at Bernstein said Toyota

Industries' ( TYIDF ) potential sale of its stake in Toyota ( TM ) was a strong

positive catalyst for its share price, adding privatisation of

the supplier was a possible scenario.

Under that scenario, Toyota ( TM ) would repurchase its stake in

Toyota Industries ( TYIDF ) while simultaneously acquiring the company's

high-growth materials handling equipment business at little to

no cost, the report said. Toyota Industries ( TYIDF ) makes forklifts

through that division.

Toyota ( TM ) industries, formerly Toyoda Automatic Loom Works, was

founded in 1926 by Sakichi Toyoda to manufacture automatic

looms. An automotive division within the company was created and

later spun off as Toyota Motor ( TM ).

In addition to forklifts, Toyota Industries ( TYIDF ) manufactures the

RAV4 sport utility vehicle for Toyota ( TM ). It also produces engines,

air-conditioning compressors for cars and electronic parts such

as batteries and converters.

($1 = 143.5900 yen)