TOKYO (Reuters) – Japanese telecom SoftBank Corp’s CEO Ken Miyauchi on Friday welcomed hedge fund Elliott Management’s investment in parent SoftBank Group Corp saying the activist investor’s assessment of the stock as undervalued was “positive”.
FILE PHOTO: SoftBank Corp. placard is prepared during a ceremony to mark the company’s debut on the Tokyo Stock Exchange in Tokyo, Japan December 19, 2018. REUTERS/Issei Kato/File Photo
Elliott has built up a roughly 3% stake in the tech conglomerate and is pushing for changes to boost its value including strengthening corporate governance and share buybacks, sources said.
Elliott “thinks the company valuation is too low so in that sense it is currently a positive for SoftBank Group,” Miyauchi said, adding he believed corporate governance at the telco he heads was already strong.
SoftBank Group’s shares, which company executives think are chronically undervalued, closed up 7% on Friday after reports of the Elliott…
Source Reuters Tech News