Digital Kingdom

On the evening of July 7, 2016, Zhao Ziming, chairman of the Digital Group, announced his shareholding in ARM at the dinner.

As soon as this explosive information was announced, it quickly spread throughout the network and caused an uproar.

The impact it brings is no less than the launch of Xiaozhi speakers!

Carnival, excitement, surprise, jealousy, all kinds of emotions are mixed.

Zhao Ziming is an entrepreneurial idol, naturally topical;

The amount of M&A is huge, beyond imagination;

Chip industry, involving national strategy;

Snake swallows the elephant, with difficulties!

Many factors have been added together to form an impact like a nuclear bomb explosion.

Even though it was late at night in China, countless media professionals were still working overtime and gathered on this incident. In less than half an hour, various hot comments on the causes and consequences were published and spread around.

Some people believe it firmly, while others sneer.

I didn't see the official announcement, didn't know the specific strategy, and only a few simple words from Zhao Ziming could not satisfy everyone.

After all, everyone knows what a gap of more than 10% means.

Mass losses, huge debts, bankruptcy...

A large number of signals have been transmitted continuously, from Asia to Europe, from the East to the West, in less than an hour, this unconfirmed, true and false holding news is difficult to distinguish.

For example, the wings of a butterfly on the Atlantic Ocean fluttered gently, forming a strong storm in the distant London Stock Exchange and the European financial circle.

ARM's stock price has changed from the lifelessness of the past half month and has begun to rise all the way.

Some funds are decisive to stop losses, but most are hesitant. After all, it is not easy to cut flesh to pay debts.

Things happen too suddenly, and information verification also requires cost.

If Zhao Ziming publishes fake news, although it will have an irreparable impact on his personal reputation, no one can compensate for the losses suffered by this action.

Once something went wrong, Zhao Ziming turned his face in denial, and there was no evidence to prove that he had said this.

For many people, riding a tiger is difficult.

At this moment, time is money, and whoever can get the news in advance can take the lead.

The entire digital group is in the eye of the storm, and almost every employee has received a phone call to inquire about the news.

The official customer center is always busy.

All stakeholders want to know:

"Zhao Ziming's announcement at the dinner, is it true or not?"

"Is it true that soldiers don't tire of fraud?"

Even so, as of the close, the price of ARM has risen to 185 (pound per share), which has brought tremendous pressure to the entire market.

It looked like a fierce beast that chose people and devoured it.

Stellar Group's headquarters and chairman's office are still brightly lit at 3 o'clock late at night.

After receiving such a shocking news at the dinner, Su Peng didn't have the mood to rest and went directly to the headquarters.

At that time, I heard that Chu Guowei participated in the short-selling, and there was an unknown premonition in my heart. After investigation, it was not surprising that many senior executives of the group could not stand the temptation, or jointly or alone, held many orders.

What is even more sad is that several overseas funds under Stellar have invested heavily in building positions. It can be said that the total losses this time are by no means a small number, which is likely to drag the entire group into a quagmire.

"Guowei, don't act too recklessly in the future."

Su Peng was silent for a long time before finally speaking.

"Brother Peng, no more," Chu Guowei relaxed, as long as the boss is willing to intervene, this time he can land safely.

It's no good to coordinate through government relations.

Although Zhao Ziming's 80% shareholding is just a casual comment, Chu Guowei dare not take it as a joke.

Once you are "squeezed" into the 10% share and there is no stock to return, it is undoubtedly the biggest disaster in your life.

Su Peng was a little gaunt, and it was damaged. Everyone jumped out to ask him for help. When he went short, no one had told him in advance.

"Brother Peng, you see what we should do," another shareholder Chen Huawen asked, licking his face.

He was dragged into the water by Chu Guowei, and when he heard that there was a chance to make a fortune, he rushed up and ended up like this, and he hated the surname Chu.

Su Peng intentionally scolded a few words, but he also knew that it would not help. Now that the matter was done, he should think about how to solve it!

Regret or pain does not help!

It doesn't make any sense to ask the reason at this time.

He has always believed that to blame and criticize is not to offend or drive away a person, but to help a person and bring out a person.

Besides, Chen Huawen has always been respectful to him. He is an expected supporter. This time he used his own private money to invest and scolded him. Not only did he fail to achieve good results, but it also easily made people too distracted.

Su Peng: "The most important thing is naturally to close the position as soon as possible."

Chen Huawen: "Shall we no longer confirm the news?"

Chu Guowei took the words: "No, although the person surnamed Zhao is not good at character, this point of credibility is still talking about it, hey, originally Peng brother had already told me to withdraw, and I hit a piece. What a bad luck!"

The regret in his heart is beyond words. When Su Peng warned him, if he could act decisively, the London Stock Exchange was still open. At that time, it was only a loss of tens of millions. When everyone reacted, I don’t know who will die!

Su Peng: "The most urgent thing is to determine the loss line and have the determination to break the arm of the strong man."

Although he doesn't pay much attention to the financial speculation market, he also knows that there are countless people who went bankrupt.180 (pound per share) is just the beginning, and it may climb to a terrifying level!

Chu Guowei: "How much do we bid, which is more appropriate?"

Su Peng glanced at Hong Bo, the manager of the overseas investment department sitting next to him, and motioned for him to answer.

Hong Bo wiped the sweat from his forehead, and said: "Be safe, 360 pounds should be fine."

The tea in Chen Huawen's mouth almost spit out, incredulously said: "360 pounds? Directly doubled?"

Hong Bo nodded.

At this moment, Secretary Oda hurried over, holding the newly printed information in his hand.

"General Su, Digital Group has issued an official announcement",

"Bring it", Su Peng took the A4 paper,

Although the person next to him was eager to see what was written, he did not dare to stretch his head over.

"As of July 7, 2016, our group's shareholding in ARM was 81%, of which 43.1% held stocks and 37.9% options..."

Su Peng saw the word "options" and suddenly realized that he turned to Oda and said, "Find someone from the Legal Department and see what's going on."

Chu Guowei, Chen Huawen, Hong Bo and others circulated in turn, some people understood instantly, and their faces were pale; some people didn't understand why they wanted to talk but stopped.

Su Peng closed his eyes, thinking about things, without the desire to speak.

This time the situation was so dangerous that it was beyond imagination, and even he was not sure to settle the matter.

"Manager Su", Lin Yifeng hurried over.

I got a hint from Oda on the road. I understood the leadership’s problem clearly. I organized the language and explained it:

"London trading has two regulations. One is the requirement that "every transaction must be announced for more than 30% of the shares." This is only for the trading of current shares. Therefore, the digital group is in the open market and barely eats Into about 40%, because the transaction must be announced every time, which is too unfavorable for the acquirer.

"For financial derivatives, this article does not apply. It has a very special rule: if the purchaser of stock options is willing to pay the premium in full according to the stock price, he can decide when to announce his own option shares. Holdings."

Chen Huawen frowned, "What do you mean?"

After listening to Lin Yifeng for a long time, he didn't understand the connection with this incident.

If it weren't for the same disease, Chu Guowei would almost ridicule the other party. He couldn't see Chen Huawen's ignorance. Lin Yifeng said so clearly, he still couldn't understand it. Apart from his background, it was useless.

Lin Yifeng further explained: "The so-called option is that you can obtain a right after paying a certain premium, that is, at a certain point in the future, you can buy the other party's equity at a certain price negotiated by both parties.

"It can be explained with the example of ARM. For example, the stock price is 165 yuan. As a buyer, you can conclude a transaction with the seller.

"I can pay you 50 yuan now, and then get the right to buy your stock at 170 yuan per share in the future. In this way, I am equivalent to spending a small amount of money to lock in the future price of this stock. In case the stock rises to 200 yuan a share, I can still buy it at 170 yuan, which is a profit.

"Of course, if the stock falls to 120 yuan in the future, because what I get is the right, not the obligation, so I can choose not to buy, then I will lose the 50 yuan before, and I can bear it."

Su Peng sighed, it was already obvious.

Digital Group used the relevant regulations of the London Stock Exchange to complete the fatal blow of the acquisition through option trading.

Although it cannot be said that the victory has been determined, after all, there are still many follow-up things, such as government review and approval, especially the supervision of the US government, but these have nothing to do with hedge funds.

Panic will spread, everyone is rushing for the road, who is considering whether the acquisition will succeed in the future!

Chen Huawen thought for a long time and hesitated: "You mean that Zhao Ziming bought ARM's future 165 yuan option at a price of 165 yuan. Isn't he a fool?"

Lin Yifeng didn’t say anything. Generally speaking, he would be a fool to do this. The price that can be negotiated for 50 yuan must be 165 yuan.

There are nothing more than two outcomes for option trading:

The first is that the future will really rise to 165 yuan. Then, you can buy it directly with the money. Now there is no need to spend this wronged money;

The second is that the future stock has not risen to 165 yuan, but the premium paid before is non-refundable, so you have lost 165 yuan in vain.It's a loss no matter what.

So no one has ever cared about this law, because people with normal minds would never do it.

However, in the current context, it has become a killer.

Chen Huawen suddenly realized that he had become a fool, opened his mouth and said nothing.

He simply can't understand how someone is so weird and against human nature.

Su Peng waved his hand and asked everyone to calm down. They scanned the surroundings with serious expressions. At this time, there was no point in discussing these things. How to avoid this disaster is the most important thing.

"Everyone has about 1% of the order. If the price is 360 (pound per share), we need to mobilize 500 million pounds. To be on the safe side, we will prepare 700 million. As soon as the London Stock Exchange opens tomorrow, we will start buying."

When Chu Guowei heard these words, the heart he had been talking about finally let go.

Guilt, regret, shame, and various emotions were constantly entangled in his mind. He finally accepted the leadership position of Su Peng from his heart and vaguely recognized the gap between himself and him.

JuxonHouse, the City of London, UK, three floors, UBS Warburg.

The atmosphere of the open office area is dull and silent!

Eric was no longer as vigorous as before, and he seemed to be ten years old.

When he heard the news from the Far East for the first time, he had an inexplicable premonition in his heart, because he held too heavy a position and did not leave immediately.

With the closing of the London Stock Exchange, the official life of the Digital Group has also been officially released, like a thunderstorm, which is incredible and desperate!

"Head, they refused," Toby said in frustration.

Eric shook his figure, supported the table with his hands, and barely stood up, even though he had a premonition in his heart, it was still difficult to accept.

As soon as the official statement of the Digital Group came out, all hedge funds were forced to the edge of the cliff.

Thousands of troops cross the single-plank bridge!

Eric was naturally unwilling to wait and die. He thought of a glimmer of hope in desperation, uniting all funds involved in short selling, stabilizing market prices, and waiting for the day when the merger fails!

As they considered before, the biggest difficulty in acquiring ARM is not the size and price of the shares, but the government's supervision.

Although Digital Group currently holds more than 80% of its shares, once the US government intervenes, the previous efforts can be wiped out. At that time, the ATM stock price avalanche is inevitable.

However, in the prisoner's dilemma, no one agreed with his proposal!

It can be said that Eric's ideas are indeed worthy of his salary and can be called a way to survive from desperation.

However, trust is a big problem.

No one can guarantee that when the London Stock Exchange opens tomorrow, no one will sneak into ARM's stock, and even Eric himself is not very sure.

Once someone else buys shares frantically, he will suffer even greater losses.

Although Eric has been immersed in the arena for many years, he does not have enough prestige to promote this matter, or that no one has this prestige!

Human nature has always been vulnerable to money.

It can only be said that Eric's thoughts can only be thoughts.

Ideas are beautiful, reality is cruel.

Rubbing his face vigorously and cheering up, Eric thought of tomorrow's fight, his forehead aching.

In such a severely under-supply market, theoretically speaking, ARM's upside is unlimited.

At that time, USB bankruptcy is a trivial matter, and the entire market may collapse!

In the afternoon of July 7, 2016, the weather was rare in London. The sun was shining outside the window and dark clouds shrouded in the window.

This will be an unforgettable day for everyone.