The Wall Street Journal

SoftBank to buy back $4.8 billion in shares after pressure by Elliott


Buyback isn’t as large as activist investor had wanted

Pedestrians walk past a SoftBank Group Corp. store in Tokyo.

Bloomberg News

Referenced Symbols

7073彩票注册TOKYO — SoftBank Group Corp. said it would spend as much as ¥500 billion ($4.8 billion) to buy back up to 7% of its own shares, following plunging stock prices and a pressure campaign from one of the world’s most aggressive activists.

7073彩票注册The proposed share buyback isn’t as large as the one urged by Elliott Management Corp., which had recently built a $2.5 billion stake in the Japanese tech giant and was pushing for as much as $20 billion in share purchases, The Wall Street Journal has reported. But it is SoftBank’s second major buyback in as many years — last year it repurchased ¥600 billion of its own shares — and is a sign of the company’s continued attempts to shore up a market capitalization that for years has languished below the value of its accumulated investment holdings.

The announcement didn’t do much immediately to stem the tumble in SoftBank shares 9984, +18.60% , which have plummeted in recent days along with the rout in markets overall. SoftBank’s shares were 6.9% lower at the end of morning trading, versus an 8% fall in Japan’s benchmark Nikkei 225 index NIK, +2.02% .

Many of SoftBank’s investors have turned critical of the company in recent months, after a series of high-profile stumbles in its $100 billion Vision Fund, the tech industry’s biggest investment fund. Elliott had asked for better governance and greater transparency at the Vision Fund, and some analysts had suggested the company would be better off spending money on share buybacks than further tech investments.

Also popular on

Read Next

Read Next

These 16 companies are working on coronavirus treatments or vaccines — here’s where things stand

7073彩票注册A mix of legacy drugmakers and small startups have stepped forward with plans to develop vaccines or treatments that target the infection caused by the novel coronavirus.

More On MarketWatch

Partner Center

689彩票邀请码 7072彩票开户 7073彩票注册 963彩票开户 7073彩票网址 7073彩票地址 7073彩票登录 66顺彩票app 8炫彩彩票app 677彩票开户