Activist investor Elliott builds up $2.5bn stake in Softbank
Activist hedge fund Elliott Management has reportedly built a $2.5bn (£1.93bn) stake in Softbank.
The activist investor is discussing ways it could boost the value of the Japanese conglomerate, according to Reuters reports.
One of the issues reportedly being discussed is how SoftBank can improve the decision-making process at its Vision Fund and the possibility of share buybacks by Softbank.
The investment is reportedly being led by Gordon Singer, the son of Elliott’s founder Paul Singer.
Shares in Softbank have plunged in the last year after a string of Softbank backed companies, including Uber, had disappointing market debuts.
It also came under pressure following the botched listing attempt by office-sharing firm Wework late last year.
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Softbank had made over $10bn (£7.74bn) investments in Wework, and took control of the startup with a $9.5bn (£7.35) rescue package after it pulled its planned initial public offering.
Earlier this week it was reported that US executive Michael Ronen is leaving Softbank’s $100bn (£77.37bn) Vision Fund after expressing concerns about “issues” at the investment giant.
Ronen had been a managing partner of the Vision Fund’s US investments, and oversaw many of its bets on transport startups including Getaround and Flexport.
An Elliott spokesperson said: “Elliott’s substantial investment in Softbank Group reflects its strong conviction that the market significantly undervalues SoftBank’s portfolio of assets.”
“Elliott has engaged privately with SoftBank’s leadership and is working constructively on solutions to help SoftBank materially and sustainably reduce its discount to intrinsic value.”
SoftBank was contacted for comment.