Paul Skinner, the chairman of Lituo Group, is reading documents in the office. Christmas is coming soon, and he needs to approve various applications submitted by the following companies.
Under normal circumstances, the CEO can make the decision, but who allows him to still hold the position of CEO and be unwilling to delegate power.
"Chairman, our stocks have been rising these days."
Skinner looked up at his subordinates: "Isn't this a good thing? Our stocks have fallen a lot this year, and now they are starting to rise. This is normal."
Many people analyze that the financial market has hit the bottom and it is time to start rebounding. It is normal for their company's stock price to rebound. Is it any wonder
"Chairman, you didn't understand. We found that someone was purchasing a large amount of our company's shares in the stock market."
Um? Someone bought a large amount of their Lituo company's shares? What's happening here? Could it be that someone knows that they are negotiating cooperation with the aluminum company in China and plans to take the opportunity to make a fortune
However, this cooperation is still under negotiation, the framework has not been finalized, and it has not been announced to the public. Only a few directors knew about it within the company. Did these people reveal the information to others
This is not good. If during formal negotiations with China Aluminum, someone suddenly sells a large number of their Lituo Group's shares, causing their stock price to fall, then Huaxia Aluminum will be able to get more shares by paying the same cash. This way they will lose money.
"Do you know who it is? Which country's organization is it?" The directors of their Lituo Group are also from different countries, including the United Kingdom, Spain, Australia, Canada, the United States, etc. If you know which country's organization it is, Acquiring their shares would also help him narrow the scope of his suspicions.
"According to our investigation, it may be from the United Kingdom and Russia."
Britain and Russia
Skinner was a little confused. Fortunately, there were two directors besides him who were British. But in Russia, there is no director of the company, but there is a vice president. Could it be that these people have united
Yes, when BHP Billiton wanted to acquire Li Tuo last year, those people expressed their approval. After the news of the acquisition broke out, those people also cashed out the stocks of many companies.
Now that the company's stock price has plummeted, they buy it again, sell it after it rises, and make another profit. This is definitely the case.
"Go and inform us that the board of directors will be held tomorrow to discuss year-end matters."
Skinner turned on his computer and looked at the company's stock price, which was still rising. It was up another two percent today.
If there is major good news, it is normal for the company's stock price to rise by 10%. However, the company's turnover and profits are obviously decreasing this year, and there is no good news. How come the stock price has risen so sharply, and it has continued to rise for several days
Although Li Tuo is not as good as Vale and BHP in iron ore, it is already the world's number one in aluminum and is also the world's leader in copper. Why should it be acquired by BHP
The company is still making money and has no losses, so why must it be sold? Even if it is sold, it will never be sold to an ambitious person like BHP!
When BHP Billiton wanted to acquire Li Tuo last year, it did not say hello in advance. Instead, it directly began to purchase a large amount of Li Tuo Group's shares in the stock market, and the purchases were made simultaneously in three markets.
This method of forced acquisition without the permission of the company's board of directors is called a hostile takeover or hostile takeover in the industry.
In fact, as the CEO of the company, he has no objection to the hostile takeover. Because if you want to complete a hostile takeover, you have to buy their company's shares at a premium in the stock market. If the stock price rises, all shareholders will benefit. The CEO's task is to make all shareholders benefit, and there is no conflict with this.
But as the company's chairman, he couldn't agree to this. Once the other party acquires a sufficient amount, the other party's equity will increase. How can he secure his position as chairman
Moreover, after the hostile takeover, even if they agree to convert the shares of Li Tuo Group into BHP shares, but the other party acquires them at a premium, the company's stock price will soon fall back.
A small shareholder sells the stock and walks away with the money. A large shareholder like him usually gets the stock and cannot sell it in a short period of time. He can only watch the stock fall and his assets expand and then shrink. Can you feel better
If you really want to acquire it, you can. Don’t pay with stocks, just take cash. If you give me cash, I don’t need to give you a premium of more than 50%. If you give me a premium of 20%, I will happily agree.
Generally, after a company is acquired, the management will also be reorganized, and the business will also be reorganized. His position as chairman will definitely be gone.
If you are lucky, you can become a director or CEO, but if you are not lucky, you can only be an idle shareholder. How can he accept the sudden disappearance of his power
What's more, in the long run, BHP's acquisition method is basically borrowing chicken to lay eggs. Because BHP planned to use a leveraged buyout, the asking price at that time was more than 170 billion U.S. dollars, but what they actually offered was only more than 10 billion U.S. dollars.
They used the shares of Lituo Company that they were about to acquire as collateral and then borrowed money from banks, which was even more unacceptable than ordinary debt acquisitions.
Fortunately, Lituo Group refused at that time, otherwise we don’t know how much trouble it would have caused. Because leveraged buyouts must borrow money from banks and other financial institutions, those institutions will then convert these borrowings into bonds and issue them.
The final result is that BHP Billiton used more than 10 billion U.S. dollars to achieve more than 100 billion U.S. dollars. Banks and other institutions obtained the pledged stocks and loan interest of the Lituo Group, and then sold these debts into bonds. And find a guarantee from an insurance company or other banking institution.
Whoever buys this bond will eventually lose money. This was the financial method that Lehmann Brothers was best at at that time, asset securitization. Many companies went bankrupt because of this operation.
When he thought of this, Skinner's hand that was flipping through the documents paused.
Wait, a hostile takeover.
Why is the method used this time so similar to the method used by BHP Billiton to acquire their Li Tuo Group
Could it be that BHP is once again planning to launch a hostile takeover? Have any shareholders of the company turned to BHP this time
No, this matter must be investigated immediately. The last time this was done, the stock price of Lituo Company ended up falling a lot. If it happens again, it will definitely fall even more!
…The fourth update of the poor four, more updates if the recommendation votes reach 180,000