Simon Westeros attempted to join the board of directors of Motorola. Not only was the Westeros company representative hung up in Chicago for three days, but he was also given a "big gift" by the Motorola chairman at Christmas. This incident was talked about by many people during the holiday season. Fun topic.
It is difficult for too many people to accept that a young man who suddenly became rich is running rampant in the capital market and trying to encroach on his original power.
Faced with the Westeros Company's silence during the Christmas period, Wall Street, North American media and technology companies held shares by the Westeros Company are all speculating on how Simon Westeros will react next.
Monday, December 28th.
After the festival, the working day came again, and the response given by the Westeros company was simple and crude.
Early in the morning, Westeros' tit-for-tat statement appeared on the same page of the New York Times as Motorola Chairman Robert Galvin's statement last week.
"The Westeros Company regrets the stock market crash in October, but the company has fully obtained its due profits within the premise of complying with business rules, and has never used any illegal means to try to manipulate the market. Moreover, the Westeros Company After the stock market crash broke out, the buying operation of investing huge amounts of money played a supporting role in the entire technology stock sector, and a large number of new technology companies benefited from it."
"Therefore, we completely reject the accusations made by Motorola Chairman Robert Galvin."
"The Westeros Company is trying to join the board of directors of shareholding companies. While safeguarding the interests of its own major shareholders, it is also intended to provide appropriate support and advice for the development of these companies."
"In order to show that Westeros does not have any speculative intentions, we will continue to absorb the shares of 25 other companies besides Motorola and increase the shareholding to more than 5% to accept public supervision."
"Westeros has publicly committed that for companies that accept us to join the board of directors, Westeros will not carry out any reduction operations in the next three years. For companies that do not accept us to join the board of directors, except for Motorola, Westeros The company will also hold the shares for at least one year."
"at last."
"In response to Motorola's malicious neglect of shareholder representatives and inappropriate comments, Westeros will reduce its holdings of all Motorola stock."
After Westeros' statement was released, the media and Wall Street quickly interpreted the core content: Simon Westeros will reduce its holdings of Motorola shares worth hundreds of millions of dollars, while continuing to absorb other technology stocks.
This is actually Simon's intention in issuing a statement in advance.
As a large investor that can affect the entire technology stock sector, if Westeros Company reduces its holdings of Motorola in a large amount without warning, other technology companies held by the company will also be affected due to panic, causing a series of chain reactions. .
Now.
Simon stated in advance that he would not only target Motorola, but would also continue to absorb other technology stocks and maintain long-term holdings. Westeros' sell-off of Motorola stock would not have caused panic in the market.
Immediately afterwards.
While Wall Street was still speculating on what strategy Simon would adopt to reduce his holdings, at 9:30 a.m., just as the New York stock market opened, a sell order for 1 million shares of Motorola stock was placed directly on the market. This kind of unreasonable selling behavior has always been Time has created a downward gap in the entire market curve.
It was not until the news spread completely that investors who thought the stock market crash was coming again stabilized.
However, led by Westeros, the entire market began to sell Motorola stock. At 4 o'clock in the afternoon, when the stock market closed, Motorola's stock price plummeted from US$75.5 at the close of last Thursday to US$62, a drop of 17.9%.
In just six and a half hours, Motorola's market value evaporated by US$1.28 billion.
at the same time.
When the evening newspaper was published in the afternoon, the news appeared in the newspaper that Westeros Company had filed equity reports with the SEC for another 25 companies.
In addition to Motorola, Westeros holds shares in 25 other companies with a total value of about US$1.3 billion. All of them increased their holdings by 0.1% to meet the 5% reporting standard. Westeros actually It only requires an investment of less than $13 million.
also.
Before today, Westeros Corporation had only confirmed board seats for five companies. But as of the close of trading in the afternoon, this number had increased to 11, and executives from some of the remaining companies had also made calls to discuss the matter.
Faced with a market value loss of more than 1.2 billion US dollars, Motorola naturally cannot calm down.
After the New York Times statement in the morning, Motorola still acted quite strongly, but by noon, the other party's attitude had completely softened. However, subsequent calls from Motorola were basically blocked on the grounds that Simon was in a meeting.
Simon was indeed in a meeting.
After two days of negotiations over the weekend, James Raybould officially joined Simon's company as the president of Westeros. His previous title was the company's legal counsel.
On Monday morning, Simon discussed the acquisition of New World Entertainment with James Raybould and the Raybould Law Firm team. Raybould Law Firm will next be led by Carol Raybould, Jennifer’s mother.
Inside a building on 51st Street in Midtown.
The meeting lasted until five o'clock in the afternoon. After get off work, Simon had just walked out of the headquarters of Raybould Law Firm with everyone when he met another menacing old man. The old man looked like he was in his sixties and was accompanied by several entourages. After seeing Simon, the look on the old man's face changed. The anger was obviously more intense.
The other party is Robert Galvin, the current chairman of Motorola.
Faced with the Westeros Company's desperate sell-off, under the dual pressure of the company's major shareholders and the board of directors, Robert Galvin had no intention of taking a vacation at all. After calling to no avail, he had to fly from Miami, Florida in a hurry New York.
The request to meet Simon was refused, and he had to come in person to block the door.
Without any intention of greeting, Robert Galvin calmed down the anger on his face a little, then stared at Simon and said: "Westeros, stop selling stocks, I can allow your people to join the board of directors."
Simon shook his head simply and said: "Mr. Galvin, you have overestimated the appeal of Motorola's board of directors seat to me. Moreover, since I have publicly stated that I will reduce my holdings in this company's stock, I will not go back on my words like some people do." of."
Robert Galvin's face twitched and he said: "In this case, Motorola can buy back the remaining shares in your hands. Please ask the price."
Simon asked Jennifer next to him: "Jenny, how much Motorola stock do we have left?"
Jennifer said without thinking: "4.13 million shares."
Simon turned to Robert Galvin, who looked a little embarrassed again after hearing this number, and said: "Mr. Galvin, 4.13 million shares, if Motorola wants to buy back, based on last Thursday's closing price of $75.5, it will erase one It’s just a fraction, you just need to pay $300 million.”
Robert Galvin glared at Simon and said subconsciously: "You are blackmailing."
Simon shrugged and said, "Alternatively, you can buy these shares back from the open market. I guarantee the price will be much cheaper."
Robert Galvin was furious again.
If all the stock held by Westeros Corporation could be bought on the open market, there's no way he'd be here today.
Stock transactions on the exchange are automatically matched by the system based on the asking prices of buyers and sellers, and it is impossible to specify which stock to buy. Westeros only needs to set the selling price higher than the lowest price, and Motorola's attempts to absorb it from the open market will be in vain.
The turnover rate of Motorola stock today exceeded 6%, reaching 5.7 million shares. Westeros made three consecutive sell orders of 1 million shares at several price points, but only sold all 4.7 million shares held. This is the reason why there are less than 600,000 shares.
Moreover, just these less than 600,000 shares caused Motorola's stock price to plummet by 17.9%. Robert Galvin simply could not imagine how far the company's stock price would fall if Westeros sold all its shares. .
Now.
Robert Galvin also understood that Simon Westeros was obviously waiting for him to come to his door.
After gritting his teeth for a moment, Robert Galvin said again: "Sixty dollars, this is the highest price I can give."
Simon repeated in a somewhat robotic tone: "$75.50."
Robert Galvin clenched his fist subconsciously. If he could be thirty years younger, he would definitely pounce on this little guy without hesitation and beat this little guy up. However, at this time, he could only suppress his voice and roar: "Don't even think about it, Westeros, you are just a bastard, a nouveau riche, a destructive maniac. You have no idea how difficult it is for adults to make money." , you’ll just act like a kid and mess up other people’s companies.”
Simon listened to Robert Galvin's low roar, narrowed his eyes, and said: "Mr. Galvin, you are wrong. I fully understand how difficult it is to start a company. So, I know that if How distressed would you be if I smashed all the bottles and jars you made with your own hands. This matter could have been resolved peacefully, but you yourself caused the current situation. Moreover, you also made me understand one thing. , since you all think that Westeros is just a bastard who is not worthy of being taken seriously, then I will let you see the true nature of a bastard. If you are unwilling to give respect, I will give you fear. See, it is that simple. . If Motorola’s stock price continues to plummet, I believe that you, the chairman who has caused huge losses to shareholders, will never be able to hold on to your position until the end of your term.”
Robert Galvin raised his finger and pointed at Simon and interrupted angrily: "You caused this!"
Simon nodded: "Yes, but they will only vent their anger on you."
Robert Galvin's body trembled a little, and he was silent for a moment before saying: "Sixty-five dollars."
Simon didn't mean to break up the business, and made some concessions, saying: "Okay, 70 US dollars. However, Motorola must come up with the money within a week. As a guarantee, before the market opens tomorrow, Motorola needs to first US$30 million was deposited into Westeros' account, and Westeros will no longer return the money once Motorola is unable to fulfill the agreement."
Robert Galvin insisted on bargaining: "$70 is too high, $67, and I need at least a month."
Simon said firmly: "70 US dollars for a week. Mr. Galvin, I am not the kind of person who likes to bargain. You have no second option."
Robert Galvin still did not give up and said: "Westeros, if I don't agree, it will not be beneficial to everyone to continue to smash the market. You will also face huge losses."
"I can completely bear this loss," Simon shook his head indifferently, looking at Robert Galvin, and said, "But you can't. After the stock market crash, the stock market will be very depressed in the next few years. I spent one day comparing Motorola's stock price It hit $62, but it may take you a year to get back to the high of $75.50. So, if you refuse, I will let Motorola’s stock price fall for another year tomorrow.”
Robert Galvin's expression was uncertain for a moment, and then he finally compromised and said: "Deal."