Investors uncomfortable with Softbank equity derivatives, shares fall 5% Monday
Japanese financial body has spend billions buying shares in tech companies
SoftBank has nearly exited all investing as it fights for survival: Gasparino
Sources tell FOX Business’ Charlie Gasparino SoftBank is looking to raise capital and will likely slash dividends.
TOKYO - SoftBank Group Corp (9984.T) shares fell 5% in early trading on Monday as the conglomerate’s big bets on equity derivatives tied to listed technology companies made investors uncomfortable.
Continue Reading Below
SOFTBANK’S BET ON TECH GIANTS FUELED POWERFUL MARKET RALLY
The Japanese financial powerhouse has spent billions of dollars buying shares in technology companies such as Amazon (AMZN.O) as it parks cash generated by a massive asset sale programme.
Stocks in this Article
The group has also made significant options purchases in tech companies, sources familiar with the matter told Reuters, in an aggressive bet by Chief Executive Masayoshi Son on rising tech stocks.
READ MORE ON FOX BUSINESS BY CLICKING HERE
Options of $4 billion generated an exposure of about $50 billion, the Wall Street Journal reported. The group has made $4 billion in trading gains from those bets, the Financial Times reported.