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SoftBank unveils $4.8 billion buyback after stock tumble, Elliott backs move – Source Reuters Tech News

TOKYO (Reuters) – SoftBank Group Corp (9984.T) is buying back up to $4.8 billion of its shares after their recent slump, a move that partially met the demand of activist fund Elliott Management but failed to soothe investors panicking from the coronavirus pandemic.

FILE PHOTO: People walk behind the logo of SoftBank Corp in Tokyo December 18, 2014. REUTERS/Toru Hanai/File Photo

The Paul Singer-led hedge fund backed SoftBank’s buyback of up to 7% of its shares for as much as 500 billion yen ($4.8 billion).

It comes after Elliott pressed SoftBank earlier this year for $20 billion in stock buybacks by selling down its stake in Chinese e-commerce giant Alibaba (BABA.N), and follows a nearly 25% decline in the Japanese investment group’s shares in March.

“SoftBank’s announcement of its intention to commence an initial buyback program of 500 billion yen is clearly an important first step in addressing the company’s significant undervaluation, and one that Elliott supports,”…

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Source Reuters Tech News

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