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Third Point's Loeb says Suzuki should cancel shares it buys back from VW

TOKYO (Reuters) - U.S. activist investor Daniel Loeb said Suzuki Motor Corp should cancel the shares it plans to buy back from Volkswagen AG <VOWG_p.DE>, not issue equity or convertible shares.

In a phone call with a small number of media outlets early on Monday, Loeb said the Japanese carmaker should buy the shares from the German giant at a price not too far from the current price.

Loeb's Third Point LLC fund sent Suzuki shares to a record high early this month when it disclosed a nearly $1 billion bet on the company, citing the automaker's dominance in India.

Suzuki said on Sunday it will buy back the 19.9 percent stake it sold to Volkswagen AG after an international arbitration court settled a dispute between the automakers over their failed partnership.

The stake would be worth some $3.8 billion at Friday's closing price.

(Reporting by Ritsuko Ando; Writing by William Mallard; Editing by Alison Williams)