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SoftBank shares jump 20% on record buyback announcement
ritcha 03/24/2020 03:58 AM CST

TOKYO/HONG KONG (Reuters) - SoftBank Group Corp stock jumped 20% on Tuesday, extending a run that began a day earlier when the Japanese tech investor announced up to $41 billion (35 billion pounds) in asset sales and a record share buyback to shore up its collapsing share price.SoftBank shares ended Monday up 19%, hitting their daily limit, after the conglomerate said in the early afternoon it would buy back up to 2 trillion yen (15.48 billion pounds) worth of shares in addition to an up to 500 billion yen purchase announced earlier this month.Chief Executive Masayoshi Son's foray into investing in late-stage startups via SoftBank's $100 billion Vision Fund has hammered the firm's shares as major bets soured, forcing a sell-down of core parts of its portfolio and buybacks - moves long sought by investors pushing for enhanced shareholder returns."We would have ideally preferred such an announcement from a position of strength and not because the (SoftBank) stock came under tremendous pressure," Jefferies analyst Atul Goyal wrote in a note, upgrading his SoftBank stock rating to "buy".Selling down SoftBank's stake in domestic wireless carrier SoftBank Corp to 50% could raise around $10 billion while retaining control of the company, Goyal wrote. more >>slotxo