Wirecard spikes on report SoftBank is considering an investment
- Wirecard's US-listed shares had a wild trading day on Tuesday.
- They fell 2% after a short-sale ban expired before spiking as much as 13% on the news that SoftBank was considering an investment.
- The German payments company has been under fire from short-sellers due to financial irregularities in its Asian business.
- Watch Wirecard trade live.
Tuesday was a volatile trading day for the German payments company Wirecard.US-listed shares fell by as much as 2% Tuesday morning after a controversial ban on short sales expired. The ban was put in place by the German financial regulator BaFin as the company began to attract the interest of short-sellers due to financial irregularities in its Asian business.Advertisement
The global ban prohibited investors from taking new short positions on Wirecard or increasing existing ones. In February, the noted short-seller Fahmi Quadir of Safkhet Capital strongly criticized the ban in an open letter to BaFin.Short-sellers have targeted the company as it has come under fire after The Financial Times alleged that a senior executive in the firm's Asian business was suspected of backdating forged contracts in a string of suspicious transactions.
SoftBank's Vision Fund, led by Masayoshi Son, has over $100 billion in committed capital for tech investments. Son first came to prominence as an initial investment of $20 million in Alibaba is now worth more than $100 billion. SoftBank could potentially enhance Wirecard's business through tie-ups with portfolio companies such as Uber and Alibaba.
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