Digital Kingdom

The City of London Building (Juxon House), close to St. Paul's Cathedral and close to the London Stock Exchange, has an excellent location, bringing together a large number of investment banks, funds, and securities firms.

3rd floor, UBS Warburg (USBWarburg).

As a world-renowned investment bank and one of the three pillars of the Swiss Bank Group, USB is naturally strong and talented. It is also the representative of European investment banks shorting ARM this time.

3 pm Shanghai time, 8 am London time.

"Daniela, give me a cup of coffee," USB project director Erik Brynjolfsson pushed open the company's glass door and said to the incoming assistant.

"It's ready." Daniela is a white beauty in her thirties. She has been an assistant to Eric for more than eight years. Natural Hui knows all his habits well.

She followed in small steps, took the boss's umbrella, and began to report to her work.

"ARM's stock price has risen to 167 pounds, and the current market price has exceeded 23 billion."

In order to short the ARM company, the entire USB prepared 3 billion pounds for this, which can be described as the largest transaction in the past five years. The entire group is watching them.

"What's the action on the digital group?" Eric asked casually, taking off his suit and hanging it on the hanger nearby.

He is a standard English gentleman, neatly dressed, and meticulous in his work.

"They are still eating, the Chinese are crazy," Daniela handed the chart in her hand to the boss.

The entire open office area burst into laughter, and everyone began to tease the Digital Group.

It can be said that this operation is the easiest and least risky one. From the supervisor to the trader, everyone can sleep well.

"They probably don't know what it's like to be short," Toby pretended to be humorous.

Eric shook his head, and did not stop his subordinates from venting.

Although he has always been cautious and will not settle down until the last moment, but he really can't think of how Zhao Ziming should come back under this situation.

"Lee will buy us Britain soon, and let them take a lesson," the fat Jeremy raised his head from under the computer screen and muttered.

"Jeremy, Li is from Hong Kong, Zhao is from Chinese, don't get confused," Daniela corrected.

"It's all the same," Jeremy replied casually.

Eric remembered buying most of Li Ka-shing in Britain.

Northern Gas Company, British Electricity Company, British Water Company, British Gas Distribution Company, British Railway Car Rental Company, British Telecom Company Three, mobile communications company O2...

From infrastructure such as power supply, gas supply, and water supply, to high-quality ports, chain stores, real estate projects, to the field of mobile communications operations, Li is everywhere.

Including Eric, many British people have complicated feelings for Lee, not just rejection or admiration, it can be said that they have mixed feelings.

"Boss, Trump's big mouth is vocal," Toby said suddenly, attracting everyone's attention.

As the presidential candidate of the Republican Party, Trump is also regarded as an important political force in the world. USB naturally pays attention to him and has someone responsible for collecting his every move.

"Say what," Eric asked.

"Strongly opposed Digital Group's acquisition of ARM," Toby said while watching the screen.

"Don't worry too much." Eric shook his head.

If Hillary Clinton speaks, he can almost seal the victory in one fell swoop. Don't forget Trump's big mouth, just to join in the fun.

Insulting women, discriminating against other ethnic groups, and talking eloquently, almost completely conflicts with Eric's values, which is incomprehensible.

He really couldn't think of any reason why Trump could also appear as a candidate in the final bipartisan showdown.

Perhaps the Democratic Party wanted to find a weaker competitor and picked Trump as a big mouth.

"Sure enough," Toby looked at ARM's stock chart, there was no big change, obviously the market has automatically filtered Trump's influence.

"Trump likes to express his views on every hot spot. Anyway, he has no chance of winning. Just listen to it as a joke."

Eric smiled and asked, "Jeremy, how many shares did the Digital Group acquire?"

Jeremy: "As of today, the Digital Group has probably acquired about 25% of the shares, and its holdings are about to reach the critical line of 30%, and the short ARM list has 8%."

"Yeah," Eric responded, "The Digital Group is seeking its own way. Let's wait for the announcement."

"If he eats more, it will be announced in these two days", Jeremy casually replied. Since the last 5% statement, the Digital Group has eaten nearly 6 billion pounds in less than a month. Shares, the action cannot be said to be not violent.

Of course, hedge funds are not hesitating and have followed up. It can be said that this shocking battle has attracted countless eyes, and almost everyone in and outside the circle is paying attention to the progress of the matter.

Why do these hedge funds dared to short the ARM company? They don't care about the risks. If the government approves the acquisition of Digital Group, the United States will no longer intervene.

Didn’t they lose out?

At your own risk is just one reason.

The key lies in the other magic weapons in their hands, the British Securities Exchange Act and the Exchange Act.

According to the provisions of these two bills, after holding more than 30% of a listed company by buying shares, if you increase your own shares, it is a tender offer for the company and must be announced to the public.

Once Digital Group holds more than 30% of ARM's shares, this means that as long as Digital Group buys ARM's shares, it must fully disclose its holdings.

A 30% share is still too far away from a 51% controlling stake and a 100% full acquisition.

For the Digital Group, every subsequent step must be publicized to the public, and it is completely under everyone's attention.

The enemy is dark and we are bright.

Hedge funds can monitor every step of the change in the situation, the big deal is to escape early when things are not good.

In this long-air standoff, the air side can be said to be confident.

After all, the possibility of acquiring a company from the open market is too low, and there are too many things that can go wrong.

"Digital Group has announced that it already holds 30.9% of ARM's shares," Toby said suddenly,

Eric and several people hurriedly got on the computer screen.

"The company held a general meeting of shareholders on May 13, 2016 and made a resolution: authorizing the chairman of the company, Mr. Zhao Ziming, to make full decisions on securities-related investment matters. According to the above authorization and the instructions of the chairman of the company, the company..."

There was a hint of joy on Eric's face, looking out the window through the glass, London in the rain, like a dream,

"The wind is up."