SoftBank shares slide 5% after news on tech stock options bet
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[TOKYO] SoftBank Group Corp shares fell 5 per cent in early trading on Monday as the conglomerate's big bets on equity derivatives tied to listed technology companies made investors uncomfortable.
The Japanese financial powerhouse has spent billions of dollars buying shares in technology companies such as Amazon as it parks cash generated by a massive asset sale programme.
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.
Options of US$4 billion generated an exposure of about US$50 billion, the Wall Street Journal reported. The group has made US$4 billion in trading gains from those bets, the Financial Times reported.
REUTERS
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