SoftBank set for sharp quarterly profit drop

In for shake-up: New York-based Elliott, which has a stake of almost US$3bil in SoftBank, is pushing for changes including US$20bil in stock buybacks. — AP

TOKYO: Japan’s SoftBank Group is expected to post a slide in profits for the past quarter, deepening concern about its ability to secure funding for a second Vision Fund and giving activist fund Elliott Management more fodder for a shake-up.

Elliott, the New York-based fund founded by billionaire Paul Singer, has amassed a stake of almost US$3bil in SoftBank and is pushing for changes including US$20bil in stock buybacks, accordng to sources last week.The emergence of Elliott, one of the world’s most powerful activist investors, as a prominent SoftBank shareholder is likely to highlight the Japanese conglomerate’s difficulties following its soured bet on office-sharing startup WeWork.