American Fortune Life
Chapter 1450: Mars Strikes Earth
On December 26, 2008, at 10 a.m., the Rockefeller Center in Manhattan, just back from Houston to Andy Smith in New York, held a press conference to officially announce the proposed $41 billion acquisition of Qualcomm, which immediately shocked the global technology industry.
Andy Smith proposes to acquire Qualcomm in cash at $35 per share for a total value of $41 billion. Qualcomm's share price rose by more than 3% before each media release.
As a result of this acquisition, several banks and investment banks that helped Andy to finance the securities have also begun to experience a slight upward trend. But what Andy didn't expect was that his two listed companies, GUESS Clothing and Starbucks, were also affected by the news and went up.
Once the deal succeeds, it will not only be the largest acquisition in the history of the global semiconductor industry, but it will also make Andy Smith the dominant giant in many chip domains, cementing his wealth base and possibly directly impacting the supply chain of Apple and smartphone giants.
Behind this or the divinely priced acquisition plan that will disrupt the semiconductor industry landscape, 24-year-old talented writer, new media giant alligator, super-rich - Andy Smith is once again the focus of attention in the world's news media and IT industries.
While it is uncertain whether the acquisition can really be completed at this time, the acquisition of Qualcomm fits perfectly with Andy Smith's “takeover maniac” character over the past two years.
Seems like no sign, in fact, the layout is long overdue. In the event of a sudden disaster, it is immediately followed by a powerful cash power crush, as an opponent may no longer have the strength to fight back.
The Starbucks example is there, making everyone unconscious that Andy Smith's takeover was only a matter of time.
One hour after Andy's press conference, Qualcomm responded and would review the proposal and act in the best interests of shareholders.
The TV media interview was then conducted, meaning that Qualcomm was reluctant to be acquired, and that Qualcomm could create a new round of value for shareholders by relying on its own power now.
However, it is clear, including Qualcomm itself, that this is just a wishful thought, and that these acquirees' ideas are simply useless to Andy Smith, who has been commercially successful every time for almost two years.
Especially with Starbucks and NBC Worldwide in front of the management earthquake after his reign, the impression of this young millionaire, the harsh fruit showdown, has been deeply impressed.
Also, Qualcomm's management wanted to express its rejection of Andy Smith, a young rich man who didn't understand technology, when Gaia's press spokesperson announced in place of Andy Smith that it now held 15.7% of Qualcomm's shares, all of them flattered.
Everyone knows that even Andy Smith's real privatization of Qualcomm can't stop him from entering the Qualcomm board, and offends a major shareholder, the Qualcomm management, unless their heads squeeze.
So now, the ball was kicked to the Qualcomm board, and the media just said they didn't welcome the acquisition of Qualcomm CEO Paul Jacob, who was slapped in the face.
Andy Smith, in practical terms, if you don't want to be bought, I won't be bought? Don't think too much, I didn't plan on taking care of you!
Andy's spokesperson officially announced at a press conference that he launched a takeover offer directly to shareholders and officially evolved into a hostile takeover!
Knight in black!
Barbarians out the door!
“Gentlemen, I hope that shareholders, being sensible, even if we were to sell stocks, the $35 acquisition price is not the final price, and believe me, our share price is up to $56.
Distinguished shareholders, accepting “hostile takeovers” from each other, while profitable in the short term, is contrary to the long-term development of the company.
Qualcomm is currently in a sensitive critical period of 2G to 3G replacement, and has established a range of human capital, supply and marketing networks, debt relationships, etc. that are closely linked to strategic stability, and these arrangements, if interrupted by short-term profit motives, will inevitably affect overall development efficiency.
Last year, we have become the number one in the industry, so please be sure to believe that Qualcomm has a huge opportunity to create significant added value for your shareholders to meet the next stage of profitable growth... ”
In the conference room at Qualcomm headquarters in California, the son of Ivan Jacob, former CEO of Qualcomm and co-founder of the company, now CEO Paul Jacob, urgently convened board members to persuade major shareholders in the form of videoconferencing.
He had to do so because many holding agencies had already begun to sell Qualcomm shares in their hands, and those stocks had been thrown into the black hole of the universe, and had been sold out as soon as they appeared.
Everyone knows that the black hole is the Andy Smith acquisition team that holds a lot of cash.
“Paul, what do you have in mind?” Thirty video windows are listed on the mega-large LCD screen, and the first person to ask is Blackstone.
“Launch a“ Poison Pills Program "counterattack in accordance with U.S. Capital Market Rules. A large number of new shares are issued to dilute the proportion of shares held by the counterparty, thus increasing the cost of funds and the ultimate return on the acquisition... ”
As soon as his voice fell, it gave rise to a voice of doubt and veto.
“This program can't... ”
“Once the poison pill strikes back, Qualcomm's rating will be lowered and the stock price will plummet, and we will not tolerate this loss! ”
“I object! ”
“I object to this proposal... ”
Paul Jacob's heart snapped and his face remained unchanged, but it was cold inside, and he knew that the most effective countermeasure was completely obsolete by his shareholders.
Profit!
Indeed, in the eyes of these investors, their respective interests are paramount, and they don't care who helps them take control of the company, and they have little respect for their CEO.
Quite frankly, Qualcomm is no longer part of their Jacob family business at this time, and he's just a senior worker with a little shares.
Listen, the strong opposition from the shareholders, Paul Jacob and the board members had an eye contact with each other, and they saw deep concern in each other's eyes.
The other is the management's agreement to resign collectively to increase the risk of operations after acquisition, not to mention the disruption of the company, which the shareholders would never agree to.
“Paul, let's get this straight, I'm sure you have a better plan to fight back, and if it's practical, we're here for you.” The representative of the shareholders of Pioneer International said.
As this was said, the original noisy argument was silent, looking through the camera at Paul Jacob on the first seat of the conference room, a thoughtful waiting for a better solution to see if they could maximize the interests of their shareholders.
“Well, first of all, I'll call Andy Smith, challenge his offer, raise the offer.
And at the same time, join partners to speak out against Andy Smith, the outsider's takeover.
It is hoped that Andy Smith will return home by mobilizing funds, planning stock buybacks to boost stock prices, and dramatically raising FY2009 performance targets. ”
Tsk, Paul Jacob did all sorts of tricks to protect his property from malicious takeovers.
“Not bad, I think it's possible... ”
“These options are good, I support... ”
“Thirty-five dollars is indeed underestimated... ”
“Where do repurchase funds come from? Mobilizing overseas funds? What about high taxes... ”
“Should some overseas cash be considered for dividends? ”
“Significantly improve FY2009 performance targets, if not met? Who's in charge? In the middle of a financial storm, can it really be done? ”
Wuzhong Wuzhong's voice made Paul Jacob and the board of directors curse each other in the face, these bastards are all thinking about how to maximize their interests.
Well, it seems that overseas funds have been taken into account, and in order to avoid being severely cut back by the United States Government when overseas funds go back, almost all TNCs will not choose to let overseas funds go back, but will stay overseas waiting for takeovers or mergers and acquisitions to justify tax evasion.
“If you shareholders agree with our counterattack plan, let's vote by show of hands now!” Paul Jacob looked serious and said with some gloomy eyes, he wanted to set up a counterattack plan early to deal with the barbarians breaking down the door!
“I agree! ”
“I don't mind! ”
“Try it! ”