The active hedge fund (Elliott Management) – managed by billionaire billionaire Paul Singer with long history in winning voting battles – managed to gain a stake of $ 2.5 billion in the Japanese giant giant (SoftBank Group), with the goal of pushing the technology giant to make changes that would boost the price of His shares, according to the Wall Street Journal announced last Thursday.
The move comes as the fund seeks to stimulate stock repurchases and improve corporate governance as well as boost the technology giant’s share price, according to the newspaper.
Shares of (SoftBank) rose by 9% after the announcement last Thursday, but it had fallen by nearly 15% during the past six months, especially after being subjected to a lot of big strikes with its investments in emerging losing companies such as (WeWork).
The New York City Elliott Management Fund is one of the largest active hedge funds on Wall Street, managing assets worth nearly $ 35 billion. The fund has a proven track record of influencing corporate governance and winning voting battles.
Billionaire billionaire Paul Singer founded the fund in 1977, and is famous for making big deals that are usually competitive and violent, and Forbes estimates his net worth at $ 3.5 billion.
The main management team from (Elliot) met the founder of SoftBank Masayoshi Son and his two deputies, and so far the discussions between the two companies have gone well, according to newspaper sources.
Reports indicate that Elliot is pushing SoftBank to improve governance, including enhancing transparency about investment decisions in its $ 100 billion Vision Fund, along with share buybacks of $ 10 billion to $ 20 billion. To help it enhance the market value of the company.
The investment in (SoftBank) is one of the largest investments in the (Elliott) Fund, which is equivalent to about 3% of the total market value of the group, which is estimated at $ 93 billion, according to the newspaper.
“We are fully in agreement that the value provided by public sector investors does not reflect the true value of the shares. SoftBank welcomes to receive opinions and comments from other shareholders,” SoftBank Group spokesperson told Wall Street. He added, “Elliott Fund in particular communicated with the leaders of (SoftBank) and works constructively to find solutions to help (SoftBank) increase the value inherently real and sustainable.”
It is noteworthy that the Elliott Fund disclosed last year its active share of $ 3.2 billion in AT&T. The hedge fund sent a strongly worded letter to the company’s board last December, asking AT&T to stop buying new companies, increase profits, buy back more shares and reduce costs.