Elliott rebuilds stake in SoftBank and pushes for $15 bln buyback, source says
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2024
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Source: reuters
- Elliott Management's Stake in SoftBank: Activist investor Elliott Management has rebuilt a stake worth over $2 billion in SoftBank Group and is advocating for a $15 billion share buyback.
- Market Response: Shares in SoftBank surged more than 5% on the news, eventually closing up 4.6% at 9,420 yen, the highest in three years.
- Engagement with SoftBank: Elliott has been in direct discussions with SoftBank's senior management over the past few months.
- Expectations from Buyback: The U.S. hedge fund anticipates that a buyback will immediately boost the share price and demonstrate CEO Masayoshi Son's confidence in the company's strategy.
- Financial Position of SoftBank: SoftBank's financial standing has improved significantly compared to 2022, largely due to the successful market debut of Arm Holdings, which it holds a 90% stake in.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
