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Message: <blockquote data-quote="Ayah" data-source="post: 23887" data-attributes="member: 3115">Softbank: The Latest Target of Activist ShareholdersBy Brian Chiu ([USER=4295]@Jiraiya[/USER] )The Story The Japanese Conglomerate SoftBank group runs a $100 bn Vision Fund, the world’s largest venture capital fund with an investment focus in technology-based start-ups, the highlight of which is WeWork. After the office-sharing company’s listing fiasco, SoftBank’s third-quarter profits plummeted by 99%. The consecutive parlous quarterly performance led to questions whether the fund could ever deliver the high return. American activist fund Elliot Management has obtained a 3% stake in SoftBank and is now taking the lead to urge the firm to buy back $20 bn of its shares to prop up the stock price. Underneath represents a broader trend of shareholder activism in corporate Japan. Impact on Businesses and Law Firms Shareholder activism generally refers to shareholders exercising their legal rights to demand changes in returns or strategy on the management level. Activist shareholders start by acquiring minority stakes in companies that they believe are significantly undervalued. By exercising minority shareholders’ rights under company law to appoint or remove directors, they privately pressure companies’ boards or threaten to replace board members by harnessing other shareholders’ votes or even launch public campaigns.  According to Lazard research, Japan has now been the highest priority outside the US for global activist funds, partly because half of the 3,700 listed companies are trading below their accounting value. In the backdrop of a corporate governance reform driven by Prime Minister Shinzo Abe to encourage private foreign investment, activist funds are now politically and legally empowered to drive changes. This latest attack against SoftBank is thus a litmus test for the corporate reform’s progress, a key to Japan’s shrinking economy’s recovery, some analysts suggested. As the world's third-largest economy, most international law firms see Japan as integral to their Asia's strategies and would avoid taking in activist clients as it may jeopardise the long-term relationship with corporate clients. Lawyers could find themselves advising companies’ boards on shareholders' rights, securities legislation, and developing defence tactics like poison pills.Goldman Sachs in Advanced Talks to Offer Loans on AmazonBy Heerim Hwang ([USER=1642]@HH[/USER] )The StoryAmazon and Goldman Sachs are reportedly close to a deal which would allow Goldman Sachs to offer loans to small and medium businesses on Amazon’s existing small business lending platform as soon as March 2020. Launched in 2011, it utilises algorithms to decide on which businesses to grant loans ranging from $1,000 to $750,000. While it is unclear if these algorithms will be used again, Goldman Sachs have reportedly already started to create the technology necessary to facilitate its loan lending through Amazon.Impact on Businesses and Law FirmsThe deal indicates a continued trend of banks seeking to collaborate with tech giants (e.g. Google and Citigroup) as opposed to the two competing against one another. News of the deal comes less than a year since Goldman Sachs launched Apple Card with Apple which was dubbed the “most successful credit card launch ever” by executives at Goldman. Just as Apple Card provided a direct channel to Apple’s over 100 million US subscribers, Goldman Sachs are likely to benefit from having direct access to Amazon’s over 1.9 million small and medium sized businesses (SMBs). Unlike its rivals, the bank lacks a network of physical branches which most other banks typically utilise to attract SMBs.The collaborative approach also benefits Amazon. The new lending opportunity with Goldman will allow the tech giant to expand its already vast marketplace, see growth in their Amazon sales, and avoid the heavy regulations that come with becoming a fully-fledged bank. By collaborating with Goldman, this also lowers Amazon’s credit risks which would allow Amazon to expand its lending offerings.  However, this may spell trouble for FinTech’s. With Amazon’s technology prowess and vast market combined with Goldman’s strong standing and regulatory approval, we may soon witness such collaborations offering digital financial products for much cheaper than FinTech’s. With greater emphasis being placed on regulating Big Tech, law firms are likely to advise such clients through complicated potential regulations placed upon banking, tech, and anti-competition.                                                                                                                                                                                                                        Mastercard Gains Approval to Enter China’s Payments MarketBy Ayah Reza ([USER=3115]@Ayah[/USER] )The StoryAfter decades of attempting to enter the $27 trillion Chinese payment and clearing market, Mastercard has finally received in-principle approval from China’s central bank. The People’s Bank of China announced that Mastercard’s joint venture with NetsUnion Clearing Corporation (NUCC), established in March 2019, will begin preparing a new institution to commence bankcard clearing services. Mastercard and NUCC will need to complete this preparation within a year, and will then be able to apply for formal approval to commence domestic bank card clearing activity. Impact on Businesses and Law FirmsThe approval comes just three weeks after the US and China signed their phase one trade agreement. China further opening up its financial industry is one of the first indications that the recent phase one trade deal agreed with the US is starting to take effect. The American company will soon be able to offer Chinese consumers the option of providing and receiving payment for goods and services with Mastercard. Until just a few years ago, the state-run China UnionPay had a monopoly as the only credit clearing provider in the country. The “Foreign Investment Market Entry Special Administrative Measures” (known as the “Negative List”) mandates that when it comes to financial services, foreign companies must form a joint venture. Mastercard is able to benefit from a recent change in rules which allow the foreign company to own a 51 percent shareholding in the joint venture. Chinese will be the governing language of many of the key contracts  entered into so it is useful to have a local Chinese partnership to navigate the complexities. As Mastercard is the majority shareholder it is likely that they will have the right to appoint and remove the legal representative.</blockquote>

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