Elliott Management has rebuilt a major stake in SoftBank ( OTCPK:SFTBY ) ( OTCPK:SFTBF ) and is pushing the Japanese technology group, founded by Masayoshi Son, to launch a $15 billion stock buyback, Financial Times mentioned.
Elliott, founded by Paul Singer, has a larger stake More than US$2 billion and has dealt directly with SoftBank's (Otkbk:sftbi) (otcpk:sftpfThe report, citing people familiar with the matter, said that the senior management during the past two or three months.
The US-based activist fund is also demanding $15 billion in stock buybacks, which it believes will provide an immediate boost to SoftBank's share price and serve as a sign of Son's confidence in his strategy.
This is the second time Elliott has targeted Son. The company's recent investment in SoftBank ( OTCPK:SFTBY ) ( OTCPK:SFTBF ) involved building a stake of about $2.5 billion in early 2020, while pushing for a $20 billion share buyback and governance changes, a report He added.
After a self-declared period in “defense mode,” SoftBank ( OTCPK:SFTBY ) ( OTCPK:SFTBF ) wants to use its “strong balance sheet and billions of cash on hand” to pursue AI deals.
The company's current growth strategy is based on a roughly 90% stake in British chip designer Arm (ARM), which went public last year and plans to launch AI chips by 2025.
