SoftBank shares jump up to 6.3% on report that Elliott Management’s pushing for $15 billion in buybacks

Elliott Management reportedly repurchased stock in SoftBank Group, causing shares to rise up to 6.3% on Wednesday.

Elliott is lobbying for $15 billion in share buybacks, claiming that they will boost SoftBank’s stock price and “act as a sign of Son’s confidence in his strategy,” according to the Financial Times.

SoftBank shares reached a high of 9,572 yen on Wednesday, 6.32% higher than their closing price on Tuesday, according to LSEG data. On Wednesday, the shares closed at 9,420 yen, up 4.6%.

Elliott’s stake was worth more than $2 billion, and the US fund manager had been in contact with SoftBank’s senior management in the last two to three months, according to the report, which cited people familiar with the situation.

SoftBank, founded by Masayoshi Son, has been investing in the artificial intelligence segment since announcing last year that the company was entering “offence mode” after amassing a massive cash pile of over $35 billion during “defense mode.”

SoftBank is betting big on Arm, a chip designer from the United Kingdom that went public last year. Arm is reportedly planning to launch AI chips by 2025 to capitalize on rising demand.

According to the report, Elliott was targeting SoftBank for the second time, citing the large gap between the combined value of the company’s assets and its market valuation.

Elliott invested $2.5 billion in SoftBank in 2020, seeking $20 billion in share buybacks and governance changes, according to the Financial Times.

Elliott Management did not immediately return CNBC’s request for comment. SoftBank Group has declined to comment.