American Fortune Life

“The financial crisis shocks have spread to the real economy since September of this year, and data suggest that the recent IT industry has also been more clearly affected.

Intel announced yesterday that it is expected to lower its Q4 earnings by $1 billion to around $9 billion due to a marked weakening of product demand across the line. Intel stock prices fell 6.8% that day.

Cisco Systems has recently indicated that its October orders have dropped significantly and sales will also decline in the fourth quarter.

Qualcomm also announced a significant drop of 45% in its Q4 profit expectations and plans to lay off 1800. Paul Jacob, CEO of the company, has stated externally that this downturn will last a year or more.

Qualcomm currently has a stock price of $28.9, up from a previous high of $56.4. ”

Andy had a headache, too, listening to the latest information reported by his men. Nima, the financial storm was so severe that Qualcomm's share price was still so high, even though it was half way down from the highest price.

“What about Qualcomm's equity distribution? ”

“Boss, Qualcomm is a decentralized company, with the top ten shareholders being institutional investors, holding shares ranging from 1.08% to 6.84%, for a total of around 30%. Owen Jacob, the founder, holds 28% of the shares, the other six founders hold 17% of the shares, and about 5% are dispersed among company executives, with only 20% in the secondary market. ”

“Are the 9% of the acquisitions our allies help come from institutional investors?” Andy talked about it, and to be honest, he hated this fragmented company, especially the huge one, and it was too much trouble and time consuming to acquire a little bit.

And over time, things can happen very easily, very eggs.

“Yes, because we have a downward trend in our current Qualcomm share prices, we are not fully absorbed in the secondary market. ”

Andy nodded, glancing at Alvitelli, frowned and asked, "Al, how was the deduction? ”

“With a $35 takeover offer, Qualcomm's board of directors is more than 90 percent likely to reject the deal, and if calculated at $28 per share, a premium of about 50 percent, or $42, would suffice to impress those institutional investors.

However, Qualcomm's group of founders and executives hold 50% of the shares, and if the boss wants to take full control of Qualcomm, then we have to get the shares from the founder team in order to break Qualcomm's original power structure and become the number one shareholder, thus stabilizing the chairmanship of the board. ”

“Oh, who wouldn't pass the dollar in this economic situation?” Andy's seemingly easy-going smile is a somewhat pressing heart, no one else knows, but he knows better than anyone that the financial crisis will begin to improve in the second quarter of next year, by which time all the momentum Andy can borrow will dissipate, and if he wants to acquire again, he'll really have to smash it with real gold and silver.

Three acquisitions were made simultaneously, two of which also meant malicious acquisitions, even if the risks were very high, which would put him under heavy debt and double the pressure, rendering him incapable of expanding further and quietly digesting in the next two or three years.

Nothing. It's really past this village. There are no more shops!

That's why he accumulates gold, builds a solid foundation with 1260 tons of gold so that he can stand undefeated, without the danger of an overall collapse, so that he can fight without worries.

“What are the chances that Qualcomm will launch a" Poison Pills Program ”counterattack if we launch an offer directly to shareholders that evolves into a hostile takeover?” Andy asked softly.

“Qualcomm is very unlikely to start a poison pill program, and they won't even consider it.

At the heart of the poison pill scheme is a large number of targeted new shares, diluting the proportion of shares held by malicious acquirers, thus increasing the cost of funding and ultimate return on the acquisition.

Alternatively, management agreed to resign collectively to increase post-acquisition operational risks.

In terms of Qualcomm's operations and governance, once the poison pill program is launched, it will cause incalculable losses to itself, and even if they end up stopping our acquisition, Qualcomm will be in huge trouble.

Firstly, corporate governance assessors will definitely downgrade Qualcomm, losing not only its position as the world's top 500, but also Wall Street preference in the coming years, and secondly, investors will never want to see a board member create an obstacle to the free flow of capital.

Therefore, even if Qualcomm refused to be acquired, leaving aside political, legal considerations, they would not have chosen to take this step simply in terms of strategy, capital and business.

And for us, there is no political, legal obstacle at all, and eventually the boss will probably be you, Qualcomm, as chairman of the board, and then the current management will continue to manage the compromise between the two sides of the company! ”

Alvitelli was not too worried about his boss launching two takeover wars at the same time, and even admired the courage of his young BOSS. In his view, the timing chosen by his boss was simply magical.

Not a dog's leg or a kiss, but after a continuous acquisition push, the think tank found that the acquisition of Qualcomm was definitely a great deal, and even if the acquisition failed, the boss could double the amount of money spent on the acquisition.

Because they chose a sniper public takeover from the outset, which typically takes place directly in the market without prior communication or warning from the acquirer and the target company in the event of problems or stock market falls due to poor operation of the target company.

Sniper public acquisitions are very covert in their initial stages, and only after they have been properly prepared do they begin to wreak havoc on the target company. This approach is used against target companies whose equity is relatively dispersed or where the company's share price is significantly undervalued.

And this sniper public acquisition, which can stand undefeated, requires a lot of matching conditions, and Qualcomm, at this stage, is undoubtedly the perfect target for implementation.

The reason why even if the acquisition fails, it won't lose money is because once the acquisition fails, Andy can throw away all the shares in his hand and earn the sharp spreads due to the good news of the acquisition, which is just as rich.

“Wouldn't a third-party white knight show up to stir things up, huh, boss? Aren't you ready for them? ”

Al smiled back, causing Andy and everyone in the conference room to laugh at the same time, listening to all aspects of his chief think tank, and Andy's anxiety soothed.

“Thank you all for your hard work, and I will give you a big holiday to enjoy your mansion and your yacht after the acquisition, but before I do, I hope you can help me win these three battles, thank you! ”

Andy understands the hard work of data collation, analysis, deduction, and perfection of his core think-tank members over the course of the night. Although they are all paid for, they are divided into hard work and hard work, which of course is also due to his generosity as a big BOSS.

However, Corporal Lixian also needs Corporal Lixian. If it sounds nice, it doesn't cost him money. Instead, it can make these people feel better about working for him. He won't think that he can cultivate a good subordinate just by giving him money. Andy has never asked how loyal he is to cultivate his subordinates.

Tell loyalty to a group of people who have been instilled in the idea of free equality since childhood? The best way to get some sleep is to bundle your interests with some emotional investment so that he can better manage these people JINGs.

There is no absolute loyalty in the world, just to see if the price of betrayal is big enough, it is human nature, people always make choices to maximize their own interests.