Extraordinary Genius

Paul Skinner, chairman of the Little Group, is looking at the documents in his office, and it's almost Christmas, and every application reported by the companies below needs his approval.

Normally, the CEO can decide, but who wants him to remain CEO and not give up?

“Chairman, our stock has been rising for the past few days. ”

Skinner looked up at his subordinates: "Isn't that a good thing? Our stock has fallen a lot this year, and now it's starting to pick up, which is normal. ”

How strange is it that many people analyze that financial markets have been explored and should begin to rebound, and that stock prices in their companies have risen, which is normal?

“Chairman, you don't understand, we found a lot of people buying shares in our company in the stock market. ”

Someone bought a lot of shares in their Li-To company? What's going on here? Does anyone know they're working with the aluminum company over at Huaxia to make a fortune?

But this cooperation is still under negotiation, the framework has not yet been finalized, nor has it been made public. There are only a few directors inside the company who know, and these people reveal the news to others?

This is not good. If, during the formal negotiations with Huaxia, people suddenly sell their shares in Lituo Group in large quantities, causing their share price to fall, Huaxia Aluminum will pay the same cash and get more shares, so they can lose.

“Do you know who it is? Which country's institutions?” They also have directors from different countries, British, Spanish, Australian, Canadian, US, etc., who can help narrow the suspicion if they know which country's agency is buying their shares.

“According to our survey, it could be from the UK and Russia. ”

England and Russia?

Skinner was a little confused, and England could say that there were two directors besides him who were British. But there is no director of the company in Russia, but there is a vice president. Are these people united?

That's right, they agreed with Bito last year when he wanted to acquire them. After the news of the takeover broke out, they also cashed in a number of companies' shares.

Now that the company's stock price has fallen dramatically, they eat it again, and throw it out after the highs, they can earn another penny. That's for sure.

“Go to the board of directors tomorrow to discuss the end of the year. ”

Skinner turned on his computer and watched the company's stock price go up, which is up another two percent today.

When there is significant positive news, the company's stock price rises 10 percent normally. But since the company's turnover and profits have been decreasing this year, and there is no good news, how can there be such a dramatic increase in share prices, and it has been going up for days?

Although Li Tuo is less likely than Freshwater Valley to have Bing He Bing Too on iron ore, it is already the world's number one aluminum industry and the world's leading copper industry. Why should Bing He Bing Too acquire it?

The company is still making money, there is no loss, why must it be sold? Even if it were, it would never be sold to an ambitious man like Bi He Bito!

When Bing and Bito wanted to acquire Li Tuo last year, instead of saying hello in advance, they started buying a large number of shares of Li Tuo Group directly in the stock market, and the three markets simultaneously.

This method of forcible acquisition, without the permission of the board of directors of Lituo, is referred to in the industry as hostile acquisition or malicious acquisition.

In fact, as CEO of the company, he has no objection to this hostile takeover. Because to complete hostile acquisitions, you have to buy shares in their company at a premium in the stock market, and if the stock price goes up, then all shareholders will profit, and the CEO's task is to make all shareholders profit, which is not a conflict.

But as chairman of the company, he couldn't agree to that. Once the other party has acquired enough quantity, the other party's equity will rise, can he hold the chairman of the board?

And even if they agreed to convert the shares of Li Tuo Group into Bi He Bi Too shares after the hostile acquisition, but the other party bought them at a premium, the company's share price would soon fall back.

Can it be better if the small shareholder sells the stock, takes the money and walks away, the big shareholder like him usually gets the stock too, can't sell it for a short time, can only watch the stock fall, his assets expand and shrink again?

If you really want to buy, you can, don't pay with any stock, just take the cash. If you give cash, you don't need more than 50 percent of your premium, 20 percent of your premium, I won't be happy to say yes.

After the acquisition of the general company, the management will also reorganize and the business will be reorganized, and his chairmanship will certainly be lost.

If he's lucky enough to be a director or CEO, if he's unlucky enough, he can only be a casual shareholder. How can he accept the sudden disappearance of this power?

Not to mention, in the long run, the kind of takeover that must and must do is simply borrow chickens to lay eggs. Because Bi He Bito was going to use leveraged acquisitions, and it was going to cost over $170 billion, but what they actually took out was just over $10 billion.

They borrowed from banks as collateral for the forthcoming takeover of shares in Li Tuo, which is more unacceptable than ordinary debt takeovers.

Luckily, however, Li Tuo Group refused at the time, otherwise it was unclear how much trouble would have arisen. Because of leveraged acquisitions, it is inevitable to borrow from financial institutions such as banks, which then convert the borrowings into bond issues.

The end result is that Bing and Bing spent more than $10 billion to do more than $100 billion. Institutions such as banks get mortgaged shares of the Lito Group and interest on borrowings, then sell these debts as bonds and get guarantees from insurance companies or other banking institutions.

Whoever buys this bond will eventually die. This was Lehman Brothers Bank's best financial instrument at the time, asset securitization, and how many companies went bankrupt because of that.

With these in mind, Skinner is going through the paperwork.

Wait, malicious takeover.

How can this approach be so similar to the last Bito takeover of their Litou Group?

Are you saying that Biwa and Bito are planning another malicious takeover? Has this time the shareholder of the company been reversed to Bi He Bito?

No, we have to find out right away. The last time we did this, Leto's share price eventually dropped a lot. If we do this again, we'll fall even more!

……