SAN FRANCISCO/TOKYO: Masayoshi Son is asking Wall Street banks to open their pocketbooks if they want in on what could be the biggest-ever initial public offering, according to people familiar with the matter.
SoftBank Group Corp has told potential underwriters seeking a large role in the blockbuster IPO of its Japanese wireless unit that they should offer to lend to other parts of the parent company’s empire, said the people, who asked to not be identified because the matter isn’t public.
One option being discussed is banks lending a combined $8 billion, said two of the people, with SoftBank’s stake in British computer-chip designer ARM Holdings Plc being used as collateral, one of them said. Loans against stakes in other companies have also been considered as the group dangles the carrot of participating in the IPO of SoftBank Mobile, the people said. Firms offering financing are seen as much likelier to get a spot on the IPO, they said.
There is no truth to this,” SoftBank Spokesman Takeaki Nukii said by phone, declining to comment further.